I have today received the below response from Teletext Holidays.
TELETEXT RESPONSE
Teletext will refund all customers 100% of what is received back from suppliers. We have had a positive response from hoteliers and transfer providers thus far and have received 100% of the monies, which will be refunded directly to our customers. We understand our legal responsibilities and will honour them, but we can only do what is possible. The refund process is taking longer than expected because, as reported in the media, some low-cost airlines are refusing to refund travel companies or direct customers where they continue to operate flights against FCDO advice.
We paid the customers’ money to airlines in good faith, but some airlines have failed to refund us yet, and so we don’t have this money. These significant delays mean they are forcing agents and customers to claim the refunds via the chargeback process, which is unprecedented within our industry. We want to thank customers for their patience and to reiterate that their money is officially protected by the Refund Credit Notes issued. We continue to fight on our customers’ behalf with these airlines to get their money back as quickly as possible.
When we initially contacted customers, we outlined a two-stage refund process whereby they were given a CAA protected Refund Credit Note with a date by which they could then claim their cash refund. This was to allow us time to get refunds back from suppliers. The initial plan was to issue refunds on an original booking departure date order however, as we got further into the detail of claiming refunds, we have found some suppliers have refunded us faster than others. Therefore, whilst we continue to prioritise where we can based on date of departure, this hasn’t been possible in all cases and as a result some clients have received their refunds faster than others.
MY VIEW
Teletext Holidays is breaking the law (The Package Travel and Linked Travel Arrangements Regulations 2018), (in short referred to as ‘The Package Travel Regulations’). In accordance with The Package Travel Regulations, Teletext Holidays has an obligation to provide full refunds. I have responded to Teletext Holidays to make this point, and to invite them to now process refunds in accordance with their obligations.
Of course, we are in unprecedented times so some forbearance is necessary. However, this, in my view, means allowing Teletext Holidays additional time in the form of ‘weeks’ to process refunds, not ‘months’.
I am sending Teletext Holidays a schedule of consumers who are waiting for refunds and asking for a date when each will receive their money. However, if you do not want to wait any longer and you paid with your debit or credit card, I would advise that you now make a chargeback/section 75 claim using the template that I have provided below. If you are still within 120 days of the date of the booking, try a chargeback claim first (regardless of whether you used a debit or credit card). If this fails, or you are outside of 180 days, and you paid with a credit card, make a section 75 claim following the instructions below:
SECTION 75 CLAIM
Send your card provider the letter below:
Template letter 1:
Dear Sirs
Credit card no: [insert no] (“My Credit Card”) Consumer Credit Act 1974 (as amended)
I am writing to make a section 75 claim.
- Background
1.1 On [date of purchase] I booked a holiday, via Teletext Holidays (“the Agent”), to commence on [date] (“the Holiday”).
1.2 The Holiday was a ‘package holiday’ and was therefore covered by the Package Travel and Linked Travel Arrangements Regulations 2018.
1.3 The cost of the Holiday was £[insert amount] and I paid for this using My Credit Card.
1.4 The Holiday has been cancelled due to the Covid-19 pandemic. Following this, I asked the Agent for a full cash refund. [My claim has been ignored] OR [My claim has been acknowledged but no payment date has been forthcoming.
- My Claim
2.1 In accordance with the Package Travel Regulations, the following terms were implied into the contract between myself and the Agent:
Termination of the package travel contract by the organiser
13.—(1) The provisions of this regulation are implied as a term in every package travel contract.
(2) Paragraph (3) applies where—
(a)the number of persons enrolled for the package is smaller than the minimum number stated in the contract and the organiser notifies the traveller of the termination of the contract within the period fixed in the contract but not later than—
(i)in the case of trips lasting more than 6 days, 20 days before the start of the package;
(ii)in the case of trips lasting between 2 and 6 days, 7 days before the start of the package;
(iii)in the case of trips lasting less than 2 days, 48 hours before the start of the package; or
(b)the organiser is prevented from performing the contract because of unavoidable and extraordinary circumstances and notifies the traveller of the termination of the contract without undue delay before the start of the package.
(3) The organiser—
(a)may terminate the package travel contract and provide the traveller with a full refund of any payments made for the package;
(b)is not liable for additional compensation.
Refunds in the event of termination
14.—(1) The provisions of this regulation are implied as a term in every package travel contract.
(2) Following a termination under regulation 12(2), the organiser must reimburse any payments made by or on behalf of the traveller, having deducted any termination fee.
(3) Any—
(a)reimbursement required under paragraph (2), or
(b)refund required pursuant to—
(i)regulation 12(8), or
(ii)a termination under regulation 13(3),
must be made to the traveller without undue delay and in any event not later than 14 days after the package travel contract is terminated.
2.2 In breach of contract (the implied terms under ss 13 and 14 of the Package Travel Regulations), the Agent has failed to provide me with a full refund within 14 days.
2.3 The Agent has stated that it will provide me with a full refund if and when the suppliers of the Holiday (namely the hotel and airline) provide it with a refund. However, neither the Package Travel Regulations, nor the contract between us, gives the Agent the legal right to withhold my refund on this basis.
2.4 As you supplied the credit for this purchase, I hold you jointly and severally liable for the breach of contract with the Supplier under section 75 of the Consumer Credit Act 1974.
You therefore have a duty to offer me the same solution to the problem as I have already asked the Agent to provide, namely a cash refund in the sum of £[amount].
Finally, I draw your attention to the statement released by the Competition and Markets Authority (CMA), which clearly expresses the view that holiday providers have a legal obligation to provide consumers with cash refunds. You can see the statement on the CMA website.
I look forward to receiving your response within the next 14 days.
Yours faithfully
[Your name]
MY SECTION 75 CLAIM WAS REJECTED
Many consumers who have experienced the above, and paid with their debit or credit card, have made a claim via the chargeback scheme, or made a section 75 claim. However, I am hearing that some of the bank/card providers have been rejecting claims, stating there is no entitlement to claim as there has been ‘no breach of contract’. This is incorrect and, if this applies to you, please go back and argue the point using my template below.
Template letter 2:
Dear Sirs
Credit card no: [insert no] (“My Credit Card”) Consumer Credit Act 1974 (as amended)
I contacted you on [ ] to make a a section 75 claim in relation to a package holiday booking with Teletext Holidays. My claim was rejected on the basis that Teletext Holidays has confirmed that it will provide my refund if and when it is refunded by the holiday suppliers.
This was not a valid reason to reject my claim as Teletext Holidays is clearly in breach of contract.
- Background
1.1 On [date of purchase] I booked a holiday, via Teletext Holidays (“the Agent”), to commence on [date] (“the Holiday”).
1.2 The Holiday was a ‘package holiday’ and was therefore covered by the Package Travel and Linked Travel Arrangements Regulations 2018.
1.3 The cost of the Holiday was £[insert amount] and I paid for this using My Credit Card.
1.4 The Holiday has been cancelled due to the Covid-19 pandemic. Following this, I asked the Agent for a full cash refund. [My claim has been ignored] OR [My claim has been acknowledged but no payment date has been forthcoming.
- My Claim
2.1 In accordance with the Package Travel Regulations, the following terms were implied into the contract between myself and the Agent:
Termination of the package travel contract by the organiser
13.—(1) The provisions of this regulation are implied as a term in every package travel contract.
(2) Paragraph (3) applies where—
(a)the number of persons enrolled for the package is smaller than the minimum number stated in the contract and the organiser notifies the traveller of the termination of the contract within the period fixed in the contract but not later than—
(i)in the case of trips lasting more than 6 days, 20 days before the start of the package;
(ii)in the case of trips lasting between 2 and 6 days, 7 days before the start of the package;
(iii)in the case of trips lasting less than 2 days, 48 hours before the start of the package; or
(b)the organiser is prevented from performing the contract because of unavoidable and extraordinary circumstances and notifies the traveller of the termination of the contract without undue delay before the start of the package.
(3) The organiser—
(a)may terminate the package travel contract and provide the traveller with a full refund of any payments made for the package;
(b)is not liable for additional compensation.
Refunds in the event of termination
14.—(1) The provisions of this regulation are implied as a term in every package travel contract.
(2) Following a termination under regulation 12(2), the organiser must reimburse any payments made by or on behalf of the traveller, having deducted any termination fee.
(3) Any—
(a)reimbursement required under paragraph (2), or
(b)refund required pursuant to—
(i)regulation 12(8), or
(ii)a termination under regulation 13(3),
must be made to the traveller without undue delay and in any event not later than 14 days after the package travel contract is terminated.
2.2 In breach of contract (the implied terms under ss 13 and 14 of the Package Travel Regulations), the Agent has failed to provide me with a full refund within 14 days.
2.3 The Agent has stated that it will provide me with a full refund if and when the suppliers of the Holiday (namely the hotel and airline) provide it with a refund. However, neither the Package Travel Regulations, nor the contract between us, gives the Agent the legal right to withhold my refund on this basis.
2.4 As you supplied the credit for this purchase, I hold you jointly and severally liable for the breach of contract with the Supplier under section 75 of the Consumer Credit Act 1974.
You therefore have a duty to offer me the same solution to the problem as I have already asked the Agent to provide, namely a cash refund in the sum of £[amount].
I therefore invite you to reconsider and accept my claim. I look forward to receiving your positive response within the next 14 days, failing which I shall lodge a claim with the Financial Ombudsman Service.
Yours faithfully
[Your name]
