Airlines and travel firms are denying refunds for cancelled trips - what to do if you’ve been affected

Airlines and travel companies in the UK have been breaking the law by refusing to issue timely refunds to customers for cancellations during the coronavirus pandemic, new research has found.

Customers whose travel plans have been affected by the outbreak have been faced with refusals when asked for their money back, or issued with an automatic credit note for cancelled flights and package holiday, according to consumer watchdog Which?.

Here’s what you should know.

Is refusing a refund legal?

Which? revealed that 20 of the UK’s largest airlines and travel firms are illegally withholding refunds that should be paid to customers within 14 days.

Instead most customers have been offered vouchers or credit notes, with many complaining they have been unable to claim a refund online, or get through to customers services on the phone to arrange for a refund.

While travel companies are entitled to offer alternatives to a refund, such as a credit note, in the event of cancelled bookings, they must also offer the option of a cash refund within 14 days.

However, cash refunds are increasingly being refused, with many of the UK’s largest package holiday providers now automatically issuing vouchers instead.

Which travel companies have refused refunds?

TUI, Virgin Holidays and Love Holidays are among those issuing credit notes in the first instance for cancelled bookings, with these being given whether customers want them or not - even when a cash refund had been specifically requested.

This is despite Which? finding that these vouchers may not be financially protected.

TUI said that customers can still get a refund, but this can only be done after a credit note has been accepted. However, these are not being issued until up to four weeks after the departure date.

The company also said that the refund process is taking considerably longer than normal, meaning customers could be forced to wait months before getting their money back.

Virgin is automatically issuing vouchers to customers, redeemable up to 31 July 2020, but insists cash refunds are still available, although requests are taking longer than usual to process. The vouchers can be used to rebook a holiday which departs any time before 31 December 2021.

Love Holiday customers cannot request a refund, although credit notes that are unused can be exchanged for cash once they have expired, with the current expiry date being 31 July.

Expedia and Lastminute.com both still claim to allow cash refunds, although customers have reported they haven’t received their money back weeks after making a claim.

Lastminute.com has not confirmed whether refunds are being processed within the specified 14 days, but said it is prioritising the most imminent departures first. However, it is charged a £25 handling fee to process these claims, according to Which?.