Airline in administration - Request refund for unused ticket
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If an airline you have booked a ticket with goes into administration, you should contact them directly to request a refund for your unused ticket.
The key thing is to act quickly. The longer you wait, the harder it becomes to get your cash back.
When a firm goes bust owing you money, goods or services, then you join a queue of people known as creditors. As a consumer, you’re generally last in the queue for cash and in practice, once investors, insolvency fees and employees have been paid, there’s little money left.
- If you’ve paid by credit card: You’ve got lots of statutory protection if you pay for goods or services using a credit card. There’s a nifty law called the Consumer Credit Act that says if you pay for things on a card that cost over £100 and less than £30,000 you could claim the money back from the card provider.
- If you’ve paid by debit card: It’s not a legal right, but the card providers run a scheme called ‘chargeback’ which means you might be able to ask them to recall your money if there’s a problem. The schemes all have slightly different rules depending on the service provider. But act quickly: if a firm has already gone bust it may be too late. Give the debit card provider a call and ask them to charge back the money as soon as possible.
- If you’ve paid electronically (PayPal, Skrill, etc): Using electronic money services like PayPal also gives you some rights, so lodge a claim using the firm’s dispute resolution rules. Like credit and debit cards, you can go to the Financial Ombudsman Service for free if you’re still unhappy with the way the claim is handled.
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