CAA announces extension of refund credit note protection

27th October 2020 by admin

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In July, the CAA announced that the ATOL scheme would cover refund credit notes issued to consumers for cancelled ATOL protected holidays. Originally, this protection applied only to refund credit notes issued between 10 March 2020 and 30 September 2020.

However, the CAA has now said that the cover has been extended to cover any refund credit notes issued between 1 October and 31 December 2020.

   

Paul Smith, Consumer Director at the UK Civil Aviation Authority said “In light of the continued impact of the coronavirus pandemic on travel, the decision to extend ATOL protection for refund credit notes will strengthen consumer confidence and allow for ATOL holders to continue to offer them in good faith to their customers.

“While consumers may choose to accept a refund credit note if one is offered, they are entitled to a cash refund and must be offered this at the same time.”

Consumers should keep all the original documentation for their ATOL protected booking, including the original ATOL certificate, proof of payment and the booking documents.
There are other conditions which a refund credit note must meet in order to benefit from ATOL protection. If consumers are concerned that a refund credit note they have received does not meet the criteria to be ATOL protected, they should contact their travel company.

Refund Credit Notes should:

• be issued by the protecting ATOL holder named on the ATOL certificate
• not exceed the value of payments made towards the ATOL protected booking
• be directly linked to an ATOL protected booking, either shown on the refund credit note directly or in supporting documents
• make clear the total value that will benefit from ATOL protection, excluding payments made separate to the ATOL protected booking or any other incentives offered by the travel company
• make clear it is not transferrable to another individual
• be clear that it can be exchanged with the travel company for cash at any time and no later than 30 September 2021, if not redeemed against a booking

Exceptions

• ATOL protection will not apply to refund credit notes issued to consumers for any value that was originally paid to the ATOL holder by a method of payment not covered by the Air Travel Trust’s Payment Policy e.g. the original ATOL protected booking was paid for by a voucher that was issued as compensation or as a prize in a raffle.
• ATOL protection will not apply to any vouchers issued separate to the ATOL protected booking e.g. incentive vouchers offered along with a refund credit note, EU261 compensation, or any extras booked separately to the ATOL protected booking.
• After 30 September 2021, ATOL protection will not apply to refund credit notes, unless they have been redeemed against an ATOL protected booking.
• ATOL protection currently will not apply to refund credit notes issued before 10 March 2020 or after 31 December 2020.
• ATOL protection will not apply to bookings purchased using a refund credit note, where the booking would not ordinarily benefit from ATOL protection e.g. a refund credit note is used to make an accommodation-only booking

[Source: CAA. 23 October, 2020]