Written by Ciara Davies
The FCA has published finalised guidance on cancellations and refunds, aimed at credit and debit card firms and insurance providers.
As a result of the COVID-19 pandemic there has been a rise in the number of cancellations of trips, holidays and other events. In the event of a cancellation, consumers are generally entitled to claim a refund from the travel or service provider or one of the travel guarantee schemes. Consumers may also be able to make a claim with their credit or debit provider or their travel insurer.
The guidance is therefore intended to ensure that firms handle enquiries and claims from consumers in a reasonable timescale, fairly and in a way that minimises inconvenience to consumers. The FCA has extended the guidance that was published in October 2020 and was due to expire on 2 April 2021.
The finalised guidance will be effective from 2 April 2021 and will remain in force until varied or revoked.
As the wider situation relating to COVID-19 develops, the FCA will consider whether it should make the guidance permanent, either in its current form or with some changes. Any permanent guidance will be subject to a full consultation.