Thomas Cook customers start getting refunds with one holidaymaker getting ‘£200 back in an hour’
THOMAS Cook customers have started to receive refunds for their cancelled holidays after the travel firm collapsed into administration earlier this week.
Holidaymakers are taking to social media to share their relief after successfully using a scheme called chargeback to get their money back.
Chargeback can be used to reclaim cash for goods and services you don't receive that have been been paid for by debit card, or by credit card for purchases under £100.
Claims must be made within 120 days of the transaction and to start a chargeback, you need to contact your card provider.
It isn’t written into law so there is no guarantee you’ll get your money back, but holidaymakers are reporting success using it for Thomas Cook trips now that the travel agent has gone bust.
One holidaymaker told that he used chargeback to get £200 returned from Barclays for Thomas Cook flights to Almeria in Spain for him and his wife.
How do I know if my holiday is ATOL protected?
WHEN you book a holiday, the ATOL holder or their agent must give you a certificate confirming you are ATOL protected as soon as you hand over any money - including a deposit - for a holiday or flight.
Make sure you obtain and keep all the relevant paperwork in case you need to make a claim.
But be aware, the protection only covers British-based firms, so it's vital to check. When lowcostholidays went bust in 2016, customers weren't protected by ATOL because the company had moved to Spain in 2013.
Some travel companies display the ATOL logo on their websites even though they don't offer financial protection.
To check it's genuine, look for a number on the logo and check it out on the CAA's website.
You should be wary if the travel provider has no ATOL number, or if the number doesn't have four or five digits.
If you aren't sure about the website, don't book through it.
Another key term Brits should be aware of is ABTA. While ATOL protects flight-based packages, ABTA protects everything else such as cruise or self-drive trips.
Dan McGlynn used chargeback as his trip wasn’t ATOL-protected and he used a debit card to make his payment.
He said the money was returned into his account one hour after putting in a call to Barclays.
We’ve also seen several other pleased customers claiming that they too have already had money back from their card providers.
One Twitter user said she was refunded by Barclays for her Thomas Cook flights to New York.
She said: "If Carlsberg did banks... Thank you, thank you, thank you Barclays which has fully refunded my Thomas Cook flights within the hour.
"Crying tears of relief that I can take my boy to New York!”
Another person tweeted: “Thank you Barclays for the assistance and speedy refund of my Thomas Cook flights.”
Consumer expert James Daley of Fairer Finance told The Sun that the length of time it takes to get your money back via chargeback depends on the bank.
He said: “Some banks will put the money back in your account the day you make the request.
“Others will push your request through an approval process and it can take a bit longer.”
HSBC told The Sun that its customers have also started to receive money back.
We've asked Santander and Lloyds Banking Group how long customers can expect to wait if they are using chargeback and we'll update this article when we get a response.
Credit card customers who have made a purchase between £100 and £30,000 can instead use Section 75 of the Consumer Credit Act to claim back their cash.
To make a claim, you'll need to contact your credit card provider.
A spokesperson for UK Finance, the banking trade body, said the length of time it takes to process a Section 75 claim varies case by case.
They added: "Firms will endeavour to do this as fast as possible.
"Customers who are currently travelling with or scheduled to travel with Thomas Cook and have paid by credit and debit card are advised to check whether they are ATOL protected in the first instance.
"If not, then speak with their individual bank or card issuer.”
If your Thomas Cook holiday was ATOL-protected, which is typically the case if you purchases a package, then you can claim your money back through the Civil Aviation Authority (CAA).
The CAA says it will launch a service to manage refunds by Monday 30 September.
This will be after all the stranded passengers are brought home as part of the UK's largest ever peacetime repatriation.
After this, the CAA says it aims to process all refunds within 60 days of full information being received.
For hotels not covered by ATOL, Thomas Cook customers should be able to claim back through ABTA.
In this case, you'll need to pay any outstanding charges on your hotel room and then claim the money back through ABTA.
Keep your receipts as you won't be able to make the claim without them.
If you cannot afford to pay what the hotel is asking, call the ABTA emergency line on 0330 135 9665.
The team will evaluate claims on a case by case basis and help you if you're stuck.
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