Finally! How you CAN get a holiday REFUND

After months of travel agents and airlines clinging on to cash from cancelled trips...

THOUSANDS of holidaymakers are still empty- handed after spending months battling travel firms for sizeable refunds.

Airlines are under investigation for sitting on more than £7 billion owed to passengers for cancelled trips, while travel agents have been accused of flouting the law.

But readers have told Money Mail they might have found a way to break the deadlock.

Many say they have had success by going to their bank or credit card provider instead.

Section 75 of the Consumer Credit Act allows customers to reclaim credit card payments. Or you can claw back money from your bank via a chargeback claim, which covers all card payments, although it is not a legal right.

Which? says the number of people using its chargeback and Section 75 tool is up six-fold since the start of the year.

Experts have warned it may not be straightforward, as claims are not being handled consistently. But Money Mail has now heard from scores of readers who have successfully won back their holiday cash from their bank or card provider.

So how you can do it, too?

SO WHAT DOES CHARGEBACK MEAN?

IT AllOWS you to reverse a transaction if services are not delivered. It covers all card payments but is not enshrined in law.

HOW IS SECTION 75 DIFFERENT?

A lEGAl right under the Consumer Credit Act 1974, it means credit card providers are jointly liable with the retailer for any breach of contract covering goods worth between £100 and £30,000.

You are still covered if the deposit you made was under £100, but the total cost of the goods is between £100 and £30,000.

WHEN CAN I MAKE A CLAIM?

CARD providers usually expect you to have pursued the retailer before making a claim, although this is not obligatory. Experts say you should go to the travel firm and your insurer before claiming.

WHAT DO CARD COMPANIES SAY?

MASTERCARD and Visa say chargeback can be claimed if a trip has been cancelled due to government restrictions, insolvency or if a voucher or credit note is rejected by the customer.

However, this does not apply to firms based in countries where the government has approved the use of vouchers instead of refunds, such as Italy.

American Express would not say more than that it was following ‘normal procedure’ and would take into account merchants’ terms and conditions.

WHAT ARE THE EXCEPTIONS?

ANY payment made via a third party, such as a comparison site, is not covered under Section 75.

PayPal is considered a third party unless payment is made with a PayPal credit card.

Goods also have to be for ‘your benefit’, so flights booked for family members may not be covered, although this is open to dispute.

SHOULD I TRY CHARGEBACK?

THERE is no upper or lower limit to claims, but timescales vary when it comes to how long you have to make a request. It is normally used for payments you didn’t make or authorise, and isn’t designed to settle disputes with a retailer.

Unlike Section 75, a retailer can dispute a claim. If upheld, take it to the Financial Ombudsman.

DO SOME BANKS DISMISS CLAIMS?

WHICH? has previously found that some banks are rejecting chargeback claims when businesses have offered credit notes or vouchers as an alternative.

Most will go only as far as saying they are treating claims a case-bycase basis, depending on terms and conditions with the retailer.

IS IT THE ANSWER TO REFUND HELL?

MARTYN JAMES, of consumer complaints website Resolver, says anecdotal evidence suggests chargeback or Section 75 is quicker and ‘you don’t lose anything by submitting a claim’.

Gareth Shaw, head of money at Which?, says it is worth a shot if you have ‘reached a stalemate’, but does warn that banks are taking ‘an inconsistent and confusing approach’.