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Airlines to cough up millions in refunds and fines over delays and cancellations

Frustrated travellers subject to major delays or cancellations to their US flights could be entitled to a portion of $US 600 million ($NZ 978 million) in refunds from six airlines forced to refund their customers. The airlines have been ordered to pay back customers by the US Department of Transport as part of “historic enforcement actions”. Under US law, customers must be refunded by airlines or ticket agents if the airline cancels or significantly changes a flight to, from or within the US and they don’t want to accept the alternate offer. The department also ordered the airlines to pay a total of $US 7.25 million ($NZ 11.83 millIon) in fines for “extreme delays in providing refunds”. “When a flight gets cancelled, passengers seeking refunds should be paid back promptly. Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travellers and get passengers their money back.” said U.S. Transportation Secretary Pete Buttigieg in <a href="https://www.transportation.gov/briefing-room/more-600-million-refunds-returned-airline-passengers-under-dot-rules-backed-new" target="_blank" rel="noopener">a press release</a> shared on Monday. “A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.” According to 7News.com.au, the refunds apply to both US and international travellers. The fines and refunds vary from airline to airline, with the affected airlines including: <ul> <li dir="ltr" aria-level="1"> Frontier Airlines - ordered to refund $US 222 million ($NZ 362.2 million) and pay $US 2.2 million ($NZ 3.6 million) in fines </li> <li dir="ltr" aria-level="1"> Air India - to pay back $US 121.5 million ($NZ million) and fined $US 1.4 ($NZ 2.3 million) </li> <li dir="ltr" aria-level="1"> TAP Portugal - with refunds totalling $US 126.5 million ($NZ 206.3 million) and fines of $US 1.1 million ($NZ 1.8 million) </li> <li dir="ltr" aria-level="1"> Aeromexico - to refund $US 13.6 million ($NZ 22.1 million) and pay $900,000 ($NZ 1.4 million) in fines </li> <li dir="ltr" aria-level="1"> El Al - due to pay $US 61.9 million ($NZ 100 million) in refunds and $900,000 ($$NZ 1.4 million) in fines </li> <li dir="ltr" aria-level="1"> Avianca - with total refunds of $US 76.8 million ($NZ 125.2 million) and a fine of $US 750,000 ($NZ 1.2 million) </li> </ul> Most of the fines will be paid to the Treasury Department, with the remainder to be credited based on airlines paying customers beyond the legal requirement. According to Blane Workie, the assistant general counsel for the Office of Aviation Consumer Protection DOT, the refunds have either already been made or customers should have been informed of them. Image: Getty Images

International Travel

What happens to your money when borders close?

It’s probably on everybody’s bucket list to travel the world…or wherever they can afford. After two years of closed borders thanks to Covid, some individuals are still waiting for their refund for the trips that never happened. Australian owned and operated online travel company checkmyfares.com has recently come under fire for not refunding the money to their customers who weren’t able to travel. Jonathan Sanderson spent $3,200 on flights to Fiji and was unable to go due to the pandemic which saw Australia’s borders close. Almost two years since the borders shut, Mr Sanderson is still waiting for his money. "I want my refund and I want it now," he told <a href="https://9now.nine.com.au/a-current-affair/travel-company-refuses-customers-holiday-their-refunds/aaf75d38-735a-483e-8a27-e1eeeabd74f1" target="_blank" rel="noopener">A Current Affair</a>. "I think it's disgusting. I can't believe a company like this can operate in Australia and get away with it.” Fifi Sajuit was another customer waiting on $6,700 for a cancelled trip to Canada. She received confirmation from Air Canada that her tickets were refunded when in fact they weren’t. Ms Sajuit was eventually refunded most of her money after the episode aired, but she claims they “treated me really badly” every time she asked for it. Consumer advocate Adam Glezer slammed the company’s behaviour toward customers, saying money should always be given back “as soon as possible”. "You shouldn't be holding on to anyone's money for any lengthy period of time at all," he said. "If a travel agent of any kind receives money back, they should be giving it back as soon as possible." The company issued a statement to the program saying they had been working with clients non-stop throughout the pandemic. Image: Checkmyfares.com

Travel Trouble

“It’s real!”: Warning over new Kmart receipt scam

A Kmart customer has shared a worrying receipt scam that may have already affected thousands of shoppers. Sharing the details on a popular Facebook page, shopper Amanda revealed how she had discovered the scam when she went to her local store to return some products. After realising she’d left her receipt behind in a shopping trolley in the belief she wouldn’t need it, the Sydney mum used her internet banking statement to prove her purchases. It wasn’t until a member of Kmart’s customer service team looked up her transaction that they made the discovery that someone had already returned all the items on her receipt. It’s believed the scammer found Amanda’s discarded receipt and collected the items listed on the docket before returning the items at the Kmart service desk and asking for a refund. “Customer Service at Kmart are happy for me to share a nasty experience today,” Amanda wrote on the North Shore Mums (Sydney) Facebook page. “On Thursday, I purchased a number of items, including five boxes of coat hangers at $10 a box. “On the way out of the store, I showed the exit attendant my proof of purchase and threw the receipt into the trolley (where it stayed). “I realised I had no receipt when I returned today to bring back the coat hangers (my hubby bought same from IKEA) so went to customer service and showed the transaction on my internet banking - which they matched on their computer,” she continued. “The Kmart refunds lady informed me that I had already returned all my purchases that day in the Bondi store. “Turns out, somebody picked up my receipt - walked around Kmart collecting the same items, and then took them for a refund! “It’s a real thing! She promised to share the store manager’s findings when they review the video of the Bondi store.” Fellow shoppers were shocked by her story. “The amount of times I’ve accidentally left my receipt in a trolley or in a bin without even thinking,” one said. “Never again. That’s just shocking.” Another said: “I always see people’s receipts in the bottom of trolleys. I wonder how many people have been scammed and never even knew?” Image: Facebook

Money & Banking

Bride demands refund from wedding photographer over Black Lives Matter support

An American wedding photographer said a couple tried to cancel their contract after she expressed her support for Black Lives Matter in a social media post. Shakira Rochelle, a photographer based in Cincinnati, Ohio, shared her support of the movement on her social media pages. The post read: “Shakira Rochelle Photography stands in solidarity with the black community. The black lives matter movement has my endless support.” <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/CBEt3EblKff/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/CBEt3EblKff/?utm_source=ig_embed&utm_campaign=loading" target="_blank">Shakira Rochelle Photography stands in solidarity with the black community. The black lives matter movement has my endless support ✊🏼.</a> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/shakirarochellephotographyy/?utm_source=ig_embed&utm_campaign=loading" target="_blank"> Shakira Rochelle🌿</a> (@shakirarochellephotographyy) on Jun 5, 2020 at 5:34pm PDT </div> </blockquote> Rochelle later received a text message from a client requesting her deposit back. “We have done a lot of talking and we cannot bring ourselves to support anyone who is so outspoken on matters that simply do not concern them as well as someone that does not believe that ALL lives matter,” the bride wrote on the text. “We … feel that you aren’t stable enough to complete the job we need from you.” Rochelle told the bride that the deposit was non-refundable, as per their signed contract. “I wish you a lifetime of growth and I would like to thank you for your donation to Black Lives Matter,” the photographer concluded. The bride told Rochelle she would be “hearing from our attorney”. <blockquote class="twitter-tweet"> I love it here. <a href="https://t.co/hKH4WFOSk2">pic.twitter.com/hKH4WFOSk2</a> — Q.🍫 (@PINKdot_COM) <a href="https://twitter.com/PINKdot_COM/status/1272880090003771393?ref_src=twsrc%5Etfw">June 16, 2020</a></blockquote> The screenshots of the messages – which Rochelle posted on her personal Facebook account – went on to become viral on social media sites. A Twitter post with pictures of the exchange has received more than 1.1 million likes. On Wednesday, Rochelle released a statement addressing claims that her post was fabricated. “There is a photoshopped screenshot circulating stating that coming forward with this story was a business tactic to make a profit on the BLM movement,” she said. “This is the most incredibly absurd thing I have ever heard. The original post started out private until a friend asked if she could share it. I never had the intentions or the desire to go viral for this or anything else.” Rochelle explained that prior to the incident, she had been booked until winter and was not seeking for more clients. “I have always stood up for human rights and will continue to do so. I have marched with my loved ones as well as alone. My intentions are pure,” she said. “Please know that what you saw from me was the complete story.” Black Lives Matter protests have been initiated across the US and around the world following the killing of George Floyd in police custody on May 25.

Art

“Sorry, not sorry”: Wedding videographer refuses to issue refund after bride-to-be dies

A man who lost his fiancée in a car crash has been threatened with a lawsuit after he requested a refund from the wedding videography company the couple had hired. Justin Montney, 24, was forced to cancel his May wedding after his 22-year-old bride-to-be Alexis-Athena Wyatt died in February. Montney said the Texas, US-based videography company Copper Stallion Media refused to refund his US$1,800 deposit, saying it was non-refundable. The man told <a href="https://www.buzzfeednews.com/article/skbaer/wedding-videographer-refuses-refund-fiance-death">Buzzfeed News</a> he reached out to the company again last week, informing them he planned to share the dispute on social media. The company threatened to sue him and Wyatt’s family in response to a review her mother wrote on wedding website The Knot. “They should have been able to [issue a refund] because they didn’t render any services,” Montney told KRDO-TV. He said the company offered to extend their service to his next wedding, which was “a very a very insensitive thing to tell me”. Montney said other vendors did not hesitate to refund their money after learning about Wyatt’s death. “They obviously felt terrible for what had happened,” he said. After Montney went public with his experience, Copper Stallion Media created a website using Montney’s name – JustinMontney.com – to rebut his claims, accusing him of driving a “smear campaign”. “We understand a death occurred, but it’s not right for people to turn to the internet and sodomize the reputation of a company,” read the text, which has since been removed on the website. “He could have quietly filed a small claim to ‘try’ to recoup the non-refundable deposit. Instead, he chose the internet to shake us down.” <img style="width: 500px; height: 281.25px; display: block; margin-left: auto; margin-right: auto;" src="https://oversixtydev.blob.core.windows.net/media/7836261/jm2.jpg" alt="" data-udi="umb://media/42c8a0c6a3154718a7ebc539453dc355" /> On May 23, the company posted a photo of the couple with the caption: “Today would have been the day where we would have filmed Justin and Alexis’ wedding in Colorado Springs. “After what Justin pulled with the media stunt to try and shake us down for a refund, we hope you sob and cry all day for what would have been your wedding day. “Sorry, not sorry.” Copper Stallion Media has since shut down their pages on Facebook and The Knot. Videographer Alex Murphy, who used to work for the company, told <a href="https://www.thedenverchannel.com/news/contact7/wedding-videographer-refuses-to-provide-refund-after-brides-death-harasses-her-family">The Denver Channel</a> he left because they refused to pay him. He said his final paycheck came from Las Vegas-registered company Organized Weddings LLC, which is associated with a man named Jesse J Clark. Clark was sued by Massachusetts’ attorney general in 2013 for defrauding 90 couples by accepting payments and failing to provide their wedding videos, according to the <a href="https://www.telegram.com/article/20130426/NEWS/104269782">Telegram & Gazette</a>.

News

“Totally dumbstruck”: Passengers furious as budget airline’s refund cheques bounce

Budget airline Ryanair has been made to apologise to customers after compensation cheques were found to have bounced. Countless passengers were overcharged during a pilot strike period where flights were cancelled. Many customers have not yet reached a resolution after their cheques were rejected at banks around the UK as they had not been signed. One woman named Karen Joyce was left €20 (NZD$35) out of pocket after she was charged by her bank. Ms Joyce took to Facebook, writing: “I was totally dumbstruck. We were loyal Ryanair customers and for them to bounce the cheque as well I just thought was disgusting.” After being on the phone with Ryanair for 20 minutes in an attempt to resolve the situation, the customer services rep hung up on her. “Then he just put the phone down. I have not received anything from Ryanair,” she said. The strike caused major disruption as thousands of flights were forced to cancel. A spokesperson for Ryanair said: “Due to an admin error, a tiny number of cheques (less than 190 out of over 20,000 compensation cheques in July) were posted without a required signatory. “These cheques were reissued last week, and we apologise sincerely for this inconvenience which arose out of our desire to issue these compensation cheques quickly to our customers.” The UK Civil Aviation Authority has advised passengers to apply for compensation under EU law 261. Previously, Ryanair had said that they are not planning on compensating affected passengers over the strikes as they were “caused by extraordinary circumstances.” The budget airline told <a rel="noopener" href="https://www.thetimes.co.uk/article/ryanair-defies-watchdog-over-compensation-for-strike-chaos-gwlr5qqmk" target="_blank">The Times</a> that the unions were behaving “unreasonably.”

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