Martin Lewis gives advice to travellers as Flybe goes into administration
UK airline Flybe has gone into administration and all its flights have been cancelled with immediate effect.
Martin Lewis, founder of MoneySavingExpert.com says: “This is clearly a sad day for the aviation industry and first thoughts go to the staff who are going to go through a difficult time now, and the many travellers and businesses for whom key domestic routes have been taken out of service.
“But if we focus specifically on customer refunds, this is a simple three-step process for most.
“The first thing to do is to look at doing a chargeback. This is where you ask your debit or credit card provider to try and get the money back from Flybe’s payment processor. While not a legal protection, it's a locked in process for Visa, Mastercard and American Express customers, and has worked very well in the past. It tends to be the quickest way of getting your money back – effectively you’re disputing the transaction as you’ve paid for something you’ve not received.
“For credit card customers – if you’ve paid for something over £100 - Section 75 offers legal protection, which means the credit card company is jointly liable with the retailer. Having said that, the card companies will tend to prefer you to do a chargeback because then they’re not shelling out for the money themselves. So I would go for chargeback first and use Section 75 if that doesn’t work.
“If you believe in either of these cases that your case has not been handled correctly then you can take the payment provider to the financial ombudsman based on the fact that it hasn’t followed standard industry practice and treated you fairly. Having said that, on past occasions like this most payment providers have paid out pretty well.
“If you have knock-on costs from not being able to go on your flight, to try and recover these, that’s where your travel insurance comes into play. In that case, travel insurance will only tend to cover you if you have cover for ‘scheduled airline failure’.
“My hope is that many people – for their flights at least – should get their money back.”