Resort stay cancelled due to COVID. Fair to expect refund, not credit?

uedamasaki on 02/04/2020 - 20:22

Had a resort stay booked in for my son's birthday from before the COVID pandemic started (a rainforest resort).

They've just shut down due to the pandemic and government directives "for the foreseeable future"

I called to request a refund and was quite bluntly told that they will not do refunds, but will give me credit that must be used within the next 6 months.

I didn't like the idea of having such a short deadline on using this credit, especially with all the uncertainty of how long this pandemic will persist. I also don't like the idea of credit for hotels, as prices would fluctuate and I'd either have to pay extra if prices went up, or I'd have leftover credit if prices went down.

I questioned about my rights as a consumer (services not being provided in the requested timeframe) and the resort staff did admit I am technically entitled to a refund. She then told me that she would not process the refund for the foreseeable future and suggested I stick with the credit.

The terms and conditions also do not specifically address cancellations made by the resort

Im aware businesses are doing it tough, but I'm just a bit concerned about having such a a large deposit in their hands during these uncertainty times and then being forced to use this within the next 6 months when I do the even know whether I'll be in a position to be booking holidays.

Am I being unreasonable pursuing a refund via a chargeback through my credit card?

Financial COVID-19

Comments

  • dcep on 02/04/2020 - 20:24
    +11

    Am I being unreasonable pursuing a refund via a chargeback through my credit card?

    no , go ahead

    • jimbobaus on 03/04/2020 - 01:13

      yes you are
      Credits are acceptable under Australian regulations given the situation.
      If you do a charge back you will be blacklisted by the accommodation
      they will also appeal the charge back and win, which means you will end up paying anyways. Take the credit and move on

      • uedamasaki on 03/04/2020 - 09:08

        Thank you for the reply. Had a look into the process of transaction disputes with my bank

        Looks like they request a response or documentation from the merchant before deciding on whether to issue a chargeback or not. They quoted around 3 business days. If they do decide to issue a chargeback, the money is permanently in my account.

        I'm aware they may blacklist me because of this and that's unfortunate, but ultimately their decision. When questioned on the original phoencall they did specifically say I'd be entitled to a refund, but strangely just said they won't process it for the forseeable future. Then I get an email saying I have $x credit expiring in 6 months.

        • bemybubble on 03/04/2020 - 10:24
          +2

          I doubt they'd blacklist you - after this they will be desperate for all the business they can get…

  • chumlee on 02/04/2020 - 20:28
    +4

    Refund.

    I know businesses may not like that but travel may not be possible or even desirable in 6 months time

    My wife managed to get Jetstar to refund flights and hotel after much following up as they only wanted to give a credit

  • Jabberwocky on 02/04/2020 - 20:33
    -2

    You didn't loose your money , they are (hopefully) not loosing their jobs.
    This is the best result.

    It's ok. People are facing much worse….

    These are exceptional times.

    • uedamasaki on 02/04/2020 - 20:42
      +1

      I guess that's why I'm kind of torn. It's because I know they're losing money. But most people are (including us). I would have probably wanted to end up rebooking there at some stage, but just can't commit to this within the next 6 months. And if I don't get to use the credit, yes I will lose the money.

      • DingoBilly on 03/04/2020 - 09:18

        I think you also have to look out for yourself. Ultimately it's the business's responsibility to plan for emergencies like this (As an individual, I'm told I need at least 6 months emergency funds - a business should not be held to a lower standard). It's exceptional for them but also for you - so they should show some leniency towards yourself and offer a cash refund as it may be impractical for you to travel in next 6 months.

        • uedamasaki on 03/04/2020 - 09:42

          Thank you for your words. I guess a part of me was wanting to be reassured that this is a reasonable course of action so I can still sleep at night.

          I guess businesses may still have access to COVID relief loans from their banks if they really need the cash. There's also government subsidies for this purpose too (like Jobkeeper payments).

  • lunchbox99 on 02/04/2020 - 20:38

    ACCC Coronavirus information

    https://www.accc.gov.au/consumers/consumer-rights-guarantees…

    Please note - "if your travel is cancelled due to government restrictions, this impacts your rights under the consumer guarantees."

    • uedamasaki on 02/04/2020 - 20:44

      Yeah, saw that. I couldnt work out what that actually means though? As in normal consumer rights don't apply?

      • AdosHouse on 02/04/2020 - 22:59
        +1

        It means if they closed because they chose too, you are entitled to your normal consumer rights. If they closed because the government ordered them too, those rights don't apply.

  • wendellX on 02/04/2020 - 23:18

    I would do the chargeback personally - it's either you that's out of the money, or them, and they haven't provided any service yet. 6 month expiry is a joke. If you can't stomach the chargeback, demand no expiry for the credit note. In writing. Hope they are still in business if you ever want to go again.

    • jimbobaus on 03/04/2020 - 01:15

      The charge back will fail
      So you are suggesting they refuse the credit, charge back, get the money back on their cc for now
      then accommodation appeals and wins, then OP is out their money as its recharged to their cc and its too late to do anything.

      People need to understand how charge backs work and stop telling everyone to do them

      • uedamasaki on 03/04/2020 - 09:34

        as above, I checked with my bank, and looks like once they decide on a chargeback it's permanently refunded to my account. I think the merchant has the opportunity to appeak this before the chargeback goes through. Not sure if it's different with other banks, but a chargeback is more an outcome of a transaction dispute process.

  • brad1-8tsi on 02/04/2020 - 23:35
    +1

    Do the charge back. They might night be there in 6 months to use any credit

  • runamuck on 02/04/2020 - 23:42

    Where is this rainforest resort? Sounds like fun, don't mind checking it out for the Easter holiday next year when the situation improves.

    • uedamasaki on 03/04/2020 - 09:09

      inland from the goldcoast/border of NSW/QLD.
      I'll probably get blacklisted for this unfortunately, but there's plenty of other options around that region.

  • leiiv on 03/04/2020 - 01:13
    +2

    Never accept credit. They may not reopen at all..

    • uedamasaki on 03/04/2020 - 09:46

      That's the other concern as well. When they say they will be closed for the "forseeable future", to me it sounds like "permanently unless something changes" as opposed to "temporarily until government directives allow us to reopen".

      The staff I spoke to didn't seem like she was prepared to discuss things further or offer any reassurance about the situation.

  • popsiee on 03/04/2020 - 09:52
    +1

    It not like you are going to be blacklisted by a major player like Qantas .
    Blacklist by some tin pot resort is fine and trying to force a 6 mth credit that most likely is going to be worthless . I would charge back .

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