All airlines must provide a refund within seven days of a trip being cancelled. While many airlines are doing their best to process a huge backlog, some are digging in their heels. Around 47,000 passengers are still waiting for refunds from British Airways, according to David Byers in The Sunday Times. Now BA has “begun offering passengers points on its Avios air miles scheme instead of cash refunds”.
There are two reasons you shouldn’t accept airmiles. First, if British Airways were to collapse before you used your miles you would lose them. Second, the airline can devalue its airmiles at any time, so you could end up with airmiles worth far less than the original price of your flight.
BA is not alone; Ryanair is also trying to avoid its legal responsibility to refund passengers for cancelled flights. Customers have been offered vouchers with the option to claim a refund after 12 months.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
If your airline refuses you a refund and you paid for your flights with a credit card you can use section 75 of the Consumer Credit Act to ask for a refund from your credit card provider instead. If you paid with a debit card you can try chargeback. This is a protection scheme that allows you to request that a transaction is reversed if there is a problem with the item or service paid for. Yet Ryanair customers “are wrongly being told that using the chargeback card-protection scheme is... fraudulent”, says Grace Gausden on This is Money. Some staff have also said customers using chargeback could be “blacklisted by the airline in the future”. But chargeback is entirely legal. If you have “exhausted all attempts to get the money back”, you are entirely within your rights to try to regain it via chargeback. Just get in touch with your card provider.
-
Trouble brews in B&M as bargain shops take a hitOpinion Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
-
Act now to bag NatWest-owned Ulster Bank's 5.2% easy access savings accountUlster Bank is offering savers the chance to earn 5.2% on their cash savings, but you need to act fast as easy access rates are falling. We have all the details
-
Moneybox raises market-leading cash ISA to 5%Savings and investing app MoneyBox has boosted the rate on its cash ISA again, hiking it from 4.75% to 5% making it one of top rates. We have all the details.
-
October NS&I Premium Bonds winners - check now to see what you wonNS&I Premium Bonds holders can check now to see if they have won a prize this month. We explain how to check your premium bonds
-
Bank of Baroda closes doors to UK retail bankingAfter almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
-
How to earn cashback on spendingFrom credit cards and current accounts to cashback websites, there are plenty of ways to earn cashback on the money you spend
-
John Lewis mulls buy now, pay later schemeThe CEO of John Lewis has said the retailer will consider introducing buy now, pay later initiatives for lower-priced items.
-
Paragon raises rate on one-year fixed cash ISA to 5.75%Paragon Bank ups its one-year fixed cash ISA rate to 5.75% - is it enough to top the table?
-
Shawbrook ups rate again on easy access saver products – how does it compare?Shawbrook bank has hiked the rates on its easy access saver and ISA again – but does it compete with other rates on the market?
