The Money Saving Expert team have issued a ten day warning to holidaymakers.
The consumer professionals, founded by Martin Lewis, gave an update on credit notes from Covid-19 cancelled package holidays in their latest newsletter. The deadline for redeeming the credit notes is fast approaching and they must be cashed in before September 30.
Regulators Civil Aviation Authority (CAA) said there is £30 million worth of unused credit notes still to be redeemed. After September 30, Air Travel Organiser's Licence (ATOL) will no longer protect credit notes issued between 10 March 2020 and 19 December 2021.
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This means that if the travel company that issued the note goes bust after 30 September, you'll become one of many people and companies owed money by the firm, and you'll have no guarantee of getting your money back. The newsletter said: "If you have an unused credit note from a package holiday that was cancelled due to the pandemic, you should redeem it or cash it in by 30 September 2022. If you don't you risk losing valuable protection if the firm that issued it goes bust."
Credit notes were initially issued by travel firms when holidays were cancelled due to the Covid-19 crisis. They could be used to book a new holiday or get a cash refund.
How to redeem or cash in your credit note
According to Money Saving Expert, to avoid losing your extra protection you should either:
- Book a new holiday before 11.59pm on September 30, 2022. You need to book before this date, but the holiday itself can usually take place afterwards. During booking, you should see a box titled "refund credit code" (or something similar). Enter your credit note details into this box and any value will be applied at the checkout.
Just remember that each travel company will have different terms and conditions in place surrounding how you redeem their credit notes. For example, some may let you use your credit note across multiple bookings, while others will only allow you to redeem the value in one transaction.
Also be aware that if you use your credit note to make a new booking, that trip will only be ATOL-protected if it would have been anyway. If you redeem the credit note on a booking that wouldn't usually be ATOL-protected, your new booking WON'T be ATOL-protected.
- Request a cash refund by 11.59pm on September 30, 2022. If you won't or can't redeem the credit note by September 30, you can request a cash refund from your travel provider. How the credit note will be refunded varies by travel firm, so it's best to check with the company you booked with, but most will refund you via the same method of payment you used when the holiday was first booked.
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