Money Saving Expert Martin Lewis has issued a warning to holidaymakers over cancellation refunds – and particularly those who are being offered vouchers rather than cash.
People throughout the country have had to cancel holiday plans and are looking to claw back the cash they shelled out on bookings.
Some firms are offering customers the chance to re-book for another time or swap for a cash refund through 'credit note refunds'. Vouchers are also being offered to some holidaymakers.
However Martin Lewis has said in his Money Saving Expert newsletter that anyone who accepts a voucher may find it "unlikely you'll be able to claim on a debit/credit card if the company goes bust.
He said: "I've been seeking confirmation on this for a while, and now I've got an answer, but it isn't great.
“If you've had a cancelled flight, by law you're entitled to a refund within a week, and the Competition and Markets Authority says other sectors should generally give cancellation refunds too.
“Yet many people are accepting vouchers - either rightly as they want to help the firm, or wrongly because firms are flouting rules, have refused refunds or made them difficult to get.
“In the travel sector, some firms are issuing 'refund credit notes' which are, they say, protected by ATOL - though this is untested. But most vouchers are just a call on the company, so if it goes bust you become a creditor and are unlikely to get money back."
Should this happen he recommends you use chargeback or Section 75 to try and get a refund from your card provider.
