Credit note protection

By | Category: Travel news

For well over a year now, airline passengers who have had their flights cancelled have had the opportunity of receiving either a full refund or a credit note which is called, slightly misleadingly by the travel trade, a Refund Credit Note (RCN).

any refund notes issued will now have a longer validity

Initially there was a lot of concern about credit notes because if a supplier went bust, the person buying the tickets would have lost all their money unless they could claim on either their insurance or on the credit card.

That altered when the CAA decided that the Government and the Air Travel Trust would provide ATOL protection. This protection was due to cease on May 30th.

Except that it won’t and the CAA has told travel companies they can continue issuing RCN’s for cancelled holidays until further notice..

Now protections will last until 30 September 2022, a 12-month extension to the scheme.

It means that holidaymakers and travellers whose package holiday bookings are cancelled by a tour operator or supplier you will be able to safely accept a RFN where it is suitable for them to do so secure in the knowledge that the value of the RCN is protected.

Nonetheless if you want a full cash refund you are entitled to get one and the supplier must provide a refund. If there is any quibbling then contact ABTA or the consumer affairs side of the CAA.

However, the CAA reminded travel businesses that consumers are entitled to a cash refund for a cancelled package holiday should they not wish to accept a Refund Credit Note.

If you, however, decide to cancel your holiday, your only recourse to getting your money back is if your travel insurance allows you to do so.

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