Continued from page 34


this is not compliant and there needs to be payment in 14 days. “The German travel


association is discussing this with the government and the government has called on the EC to say ‘bring out guidelines’.” Siebert said: “Italy, France,


Belgium, Denmark and others have put in place a voucher solution. In Germany, that is not in place but all the actors in the market work with a sort of voucher solution. There is no one paying back [money].” This is despite vouchers


being outside the insolvency protection regime in Germany. Siebert said: “Credit refund notes or travel vouchers are definitely not backed [protected]. All travel vouchers already issued are not covered for insolvency risks.” Micheal Wukoschitz, of


CKW Lawyers in Vienna, said: “In Austria, it’s the same. All my clients try to offer vouchers to customers, sometimes with some add-on. But no traveller can be forced to accept such a voucher because of the PTD. “Austrian travel associations


are trying to get a solution like the Italian or Belgian system, but there is great opposition from consumer associations.” The lawyers point out


consumers are unlikely to recover money through the courts as legal systems across Europe are barely functioning. Wukoschitz said: “All court


hearings are cancelled or delayed. If a traveller filed a lawsuit it would take a lot of time.” Mason agreed, saying:


“The UK court system is not functioning. “By the time consumers


could enforce their rights, holidays may have started again.”


Insolvency fears if banks issue card chargebacks


Ian Taylor


Credit card chargebacks threaten to trigger insolvencies even if businesses manage to replace cash refunds for cancelled bookings with refund credit notes in line with Abta guidelines.


That is the view of Travel Trade


Consultancy director Martin Alcock, who warned: “Credit card chargebacks are becoming the looming issue.” Alcock told an International


Travel Law Network videoconference last week: “You have consumers desperate for refunds and companies doing everything they can to hold them off. Sooner or later consumers will turn to their cards. “The card issuers have different


views about paying the refund and charging back. We might end up in a position where that is what brings companies down.” He noted: “Visa and Mastercard


Martin Alcock


decide how the card schemes work [and] are reasonably sympathetic to the idea of travel companies offering refund credit notes following guidelines that preserve customers’ right to an ultimate refund. The guidelines from Visa and Mastercard are that card-issuing banks should look favourably on tour companies working with customers if a chargeback is


You have consumers


desperate for refunds and companies doing everything they can to hold them off


raised for non-delivery. But the banks have a degree of autonomy.” Abta is in talks with UK Finance,


the trade association for UK banks, on guidance to card-issuing banks which would advise they refuse chargebacks where refund credit notes are issued under Abta guidelines. However, Alcock warned: “The


issue comes back to exposure. As soon as the government [travel] advice changed, every tour operator maxed out their overdraft facility. So you have all that liability.” He argued the card-issuing banks


“see all the risk being put on them and are saying: ‘Our liability has dramati- cally increased. We’re not interested in being the lender of last resort.’”


EC voucher ruling predicted to spark travel firm failures


EC action to permit airlines but not travel agents or operators to issue vouchers to consumers in place of refunds would cause “tremendous difficulties” and “insolvency in two to three weeks”, a lawyer has warned. Airline lobby groups believe


there is a strong chance the EC will allow airlines to issue vouchers for flights cancelled due to coronavirus


32 9 APRIL 2020


restrictions despite EU Regulation 261 on air passenger rights requiring refunds within seven days. At the same time, Abta and


German travel association DRV are leading calls for changes to the Package Travel Directive to allow refund credit notes to replace cash refunds for cancelled holidays. Klaus Siebert, partner at law firm


Engels-Siebert in Dusseldorf, told an International Travel Law Network videoconference: “[In Germany] we expect airline refunds [vouchers] to be accepted. But for tour organisers, they will not be accepted.” Siebert warned: “When tour


organisers do not get cash refunds [from airlines] but are not allowed to issue travel vouchers and need to do a cash refund to their package travel customers, they will be running into insolvency in two or three weeks.”


travelweekly.co.uk


EC,Brussels


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34