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John de Vial (inset), Abta director of membership and financial protection, has issued the latest Abta guidance


Abta spells out its rules for Refund Credit Notes


Association extends validity periods based on bond expiry dates. By Ian Taylor The association confirms it will


Abta’s latest guidance on Refund Credit Notes spells out clearly how to deal with refunds due to coronavirus travel restrictions. It confirms Atol-protected


bookings will be covered and extends expiry dates when cash refunds fall due if no holiday has been taken to 2021 for most Abta members. The guidance includes rules on


issuing Refund Credit Notes (RCNs) since if “not done right, travellers lose protections”. Abta believes RCNs, correctly issued, will “help operators and agents remain viable while


36 16 APRIL 2020


honouring their obligation to refund customers”. Abta notes many businesses “do


not have the cash to immediately provide refunds” as required by the Package Travel Regulations (PTRs). RCNs “allow the customer to


amend their holiday for a later date . . . under the same package travel contract as the original booking and therefore retain the protections of the PTRs”. They are not the same as holiday


vouchers, Abta warns, which “are not generally protected by Abta or under the Atol scheme”.


protect RCNs for bookings originally protected under the Abta scheme but affected by Covid-19, saying: “This protection will last for the period of the financial-protection arrangements in place for individual members, driven by the expiry period of the bonds [they provide].” The Abta guidance also confirms:


“Refunds for Atol-protected bookings are covered.”


Continued on page 34 travelweekly.co.uk


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