You are here: Home - Insurance - News -

Refund credit protection extended for Covid-disrupted travellers

Written by:
The aviation regulator has extended the protection available to holidaymakers who are issued with refund credit notes if their booking has been cancelled due to coronavirus.

The Civil Aviation Authority (CAA) has announced an extension to the ATOL protection offered for refund credit notes.

ATOL is a protection scheme afforded to holidaymakers with flight-based bookings which refunds, repatriates and reimburses travellers if the company goes bust.

Given the ongoing disruption to the travel industry caused by the pandemic, the CAA confirmed that refund credit notes issued up to 31 March 2021 will come with ATOL protection. This protection was due to expire on 31 January 2021.

These notes will then be covered up until 30 September 2021, at which point the government backing for their ATOL protection will end.

This means holidaymakers should exchange the notes for cash – holidaymakers are entitled to a cash refund if they don’t want to accept a refund credit note – or use them to buy an ATOL protected booking before this date.

However, the Air Travel Trust (ATT) said it is possible some holidaymakers may not be able to redeem their refund credit notes before this date and is “engaging with the government to discuss the issue and how it might best be addressed”.

‘Notes offered in good faith and consumers won’t be at financial risk’

Paul Smith, consumer director at the CAA said “We recognise that changes to government restrictions on travel have an unprecedented effect on ATOL holders and on consumers with ATOL protected bookings. In light of these circumstances, we have extended ATOL protection for refund credit notes.

“This will allow for travel companies to offer their customers refund credit notes in good faith and mean that consumers will not be at financial risk if they choose to accept a refund credit note rather than a cash refund.”

To benefit from the protection, refund credit notes:

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week