Refund credit note? CAA warns to 'take action now'
The Civil Aviation Authority (CAA) is urging travellers to 'take action now' if they still have unredeemed travel refund credit notes from any Covid-19 disruption. There's just one week to go before these credit notes lose their Atol protection, so if you're holding onto one of these, here are your options.
If you were given a credit note between 10 March 2020 and 19 December 2021 for a holiday you weren’t able to take amid Covid-19 restrictions, your unspent refund will lose its financial protection on Friday 30 September 2022. Your credit note may still be used or cashed in after that date, but it won't be Atol protected, meaning if the operator goes bust you risk losing your money.
Holidaymakers accepted these notes, unaware that they were actually entitled to a cash refund if they preferred. That’s because under the Package Holiday Travel Regulations, travellers should be offered the option of a cash refund when a provider cancels a package holiday, even if they’re also being offered other choices such as credit notes or the opportunity to rebook travel fee-free.
Consumers are still sitting on an estimated £30 million worth of these credit notes just one week before the deadline, the CAA has said.
'This will affect customers of some of our biggest travel firms, so our message is simple - this is the last chance to make sure you continue to be financially protected by the Atol scheme,' said the CAA's Michael Budge, adding that it's 'better to be safe than sorry'.
We’re calling for a major overhaul of the travel industry to further enforce your rights and make the process of accessing compensation simpler. Support our campaign by signing our petition to transform travel.
How does a credit note put my money at risk?
- Expiry dates
Many of those credit notes had validity periods associated with them, and if they expire before being used they may become worthless - meaning you lose all of your money. That’s why, where possible, it’s always best to insist on cash if your travel plans are cancelled by your provider. - Atol protection expiring
Even if your credit note doesn’t expire soon, its Atol protection does. Credit notes issued for holidays cancelled amid Covid-19 between March 2020 and December 2021 have special protections from Atol. Those protections mean that if your holiday company goes bust, your money is still protected. But those protections end soon, on Friday 30 September 2022, meaning you should urgently redeem your credit note.
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Can I exchange my credit note for cash?
Yes – you have a right to swap your credit note for cash. You can do this by contacting your holiday provider and requesting to cash in your credit note. We strongly advise you to do this to ensure your money is safe. As long as your funds are tied up in a credit note, they are at risk.
What happens if I miss the deadline for swapping a credit note for cash?
Technically there isn’t a deadline. You can still redeem the credit note for cash after Friday 30 September 2022. However, to get the maximum protection for your unspent funds – i.e. to avoid losing your money if the holiday company goes bust – you should redeem it as cash as soon as possible. Tell your holiday provider you've changed your mind and ask for a refund instead.
Do I have a credit note or a voucher? What’s the difference?
If you’re unsure whether you have a voucher or a credit note, there are a couple of ways to check. First, any credit note should include the original booking details and original reference number. It's also important that it details only the amount you originally paid. It should be called a 'refund credit note' rather than a voucher. If in doubt, contact Abta and ask if you've been issued a voucher or a credit note.
What are the passport validity rules for travelling to Europe now?
Can I get a refund for a travel voucher?
Travel vouchers are different from credit notes, because they aren’t Atol protected, meaning that if the company was to go under you would not be able to get your money back easily. Regular vouchers from holiday companies have never been financially protected. You may have been issued a voucher rather than a refund credit note if your holiday isn’t a package holiday, or if your refund is for flights only.
If you accepted a voucher last year and were given no option for a refund, or you were misled into accepting it under the assumption you weren’t entitled to cash, you could dispute it. Approach your airline or holiday company and explain the situation, and why you want a refund. If they refuse, you can take your complaint to alternative dispute resolution. It's free in most instances, and several passengers have had success doing this.
If you were offered a refund at the time and the options were displayed clearly and you chose to accept a voucher, you won't be able to swap for a refund. The best thing to do in this instance is check to see if the validity has been extended. If not, use the voucher or you will lose your money.
As a final resort, if you have a voucher from a holiday company that is about to expire, you may want to redeem it to book a new package holiday, as this will at least be Atol protected.
