VA no longer issuing credits to travelbank (or anywhere else)

[bcworld]

I think there is a high probability that the flights will be cancelled with Singapore sending the points back to Virgin.

Singapore did not receive any points to send back. You paid Velocity in points and Velocity used $ to pay SQ. Velocity may not have even paid SQ yet depending on whether they pay at the time of booking or after you fly.

 

[nickykim]

Singapore did not receive any points to send back. You paid Velocity in points and Velocity used $ to pay SQ. Velocity may not have even paid SQ yet depending on whether they pay at the time of booking or after you fly.

Sure - I knew this but didn’t spell it out.

The current status is that Virgin does not have legal authority to refuse to refund Velocity points for Velocity redemption flights.

 

[Rob.au]

With the obvious differences in exposures, some institutions are more likely to be diligent in checking the validity of a chargeback (checking actual eligibility) than those that have nothing to lose.

For the reasons you describe, I would imagine Amex would fight the consumer much harder.

So for VA tickets, if a credit is issued by VA, there is no breach of the contract for the provision of service as that was what was agreed up front. With no breach of the contract, then there is no failure to supply, and no charge back right - as yet.

For the record, while this may be true under the ACL, this doesn't hold under the card scheme rules. A failure to supply is just that. The supplier having T&Cs saying they can make do with offering a credit does not override their merchant agreement and the card scheme rules they signed up to.

VA acknowledged in the media this week that there are thousands of chargebacks being processed following their refusal to refund.

This is why the Administrators were keen to be able to issue the credits

They would be keen to issue credits for the same reason VA was keen to issue credits prior to administration. A credit represents cash they can hold onto. Anyone they can convince into accepting the credit and not proceeding with a chargeback is cash they can hold onto.

 

[jakeseven7]

So I’m wondering how some people have been successful getting their money back and others have not. Is it those who had refundable fares?

 

[Harthagan]

So I’m wondering how some people have been successful getting their money back and others have not. Is it those who had refundable fares?

In my case it seemed to purely come down to the operator I got when I called. Both times the situation was identical, non refundable fares for flights that virgin was no longer flying.

1st instance got a lovely lady who was understanding and worked through everything with me on the phone and told me she would process the chargeback. The next day the money was in my account.

The next time I called up (same credit card) got an unfriendly lady who seemed straight away to not want to help. After I explained the situation she put me on hold while she called up virgin. She came back and said that virgin offered me a suitable remedy (the travel bank) and that if I want to proceed with a chargeback they will need to do an investigation which could take 6-8 weeks.

 

[cxthomps]

It gets worse, I now have an email from Virgin stating they will not be refunding points or taxes paid for 2 cancelled reward bookings.
I have responded with links to both their own website stating they will and the Deloitte order in the court stating that this does not apply to reward bookings.
They are indeed in a hell of a mess.

C.

 

[Mattg]

I am in the same boat. Cancelled a reward flight and was told no refunds for now. Luckily I paid the taxes with points so not really out of pocket - still annoying though.

Looks like the Velocity website has now been updated:

Q. What happens for bookings after 1 September – will I receive full refunds for cancellations?
A. At this stage we are only offering a full refund on Virgin Australia Reward Seat or Any Seat flights booked between 15 May 2020 and 1 September 2020 and cancelled prior to 1 September 2020, however we’ll continue to review this and keep you updated.

Can they just change their policy retrospectively without giving any notice/warning? This seems very, very dodgy...

 

[TheInsider]

The next time I called up (same credit card) got an unfriendly lady who seemed straight away to not want to help. After I explained the situation she put me on hold while she called up virgin. She came back and said that virgin offered me a suitable remedy (the travel bank) and that if I want to proceed with a chargeback they will need to do an investigation which could take 6-8 weeks.

Highly doubt they would've actually called, maybe just said they did. For them (a bank) to speak to VA about your booking specifically, breaches so many privacy controls and policies they have.

 

[oz_mark]

Can they just change their policy retrospectively without giving any notice/warning? This seems very, very dodgy...

They're in administration. Things can change.

 

[tomlee1986]

@oz_mark I Agree... the administrator can do anything including change of terms and conditions to save the company as much as possible

 

[Harthagan]

Highly doubt they would've actually called, maybe just said they did. For them (a bank) to speak to VA about your booking specifically, breaches so many privacy controls and policies they have.

Well it was the virgin high flyer card. Unsure if that has any bearing on the matter?

 

[glasszon]

Well it was the virgin high flyer card. Unsure if that has any bearing on the matter?

The one issued by Citibank? Not surprised in that case.....

The reality is even if the operator processed the chargeback, what's going to happen is VA will dispute the chargeback and will result in a chargeback reversal. It's then up to the cardholder to duke it out with the card provider to insist the chargeback be processed.

I won't be surprised if AFCA gets swamped with lots of cases related to chargebacks.

 

[Mattg]

@oz_mark I Agree... the administrator can do anything including change of terms and conditions to save the company as much as possible

I could be wrong but if you made a Velocity reward seat booking, isn't your contract with Velocity Frequent Flyer, which is not in administration?

The Velocity website is still pointing out that they're a separate company:



In any case, if they can just change the rules whenever they like, why should anyone trust Velocity when they say they'll refund cancelled reward flights booked until 31 August?

 

[oz_mark]

I could be wrong but if you made a Velocity reward seat booking, isn't your contract with Velocity Frequent Flyer, which is not in administration?

The Velocity website is still pointing out that they're a separate company:

View attachment 218120

In any case, if they can just change the rules whenever they like, why should anyone trust Velocity when they say they'll refund cancelled reward flights booked until 31 August?

The state of the world is such that a lot of things could happen. Velocity itself could go into administration. But realistically, what's going to change? Maybe the dates, depending on how the sales process goes.

 

[nickykim]

Amex travel insurance may cover refusal to refund points to Velocity by Virgin if the flight is cancelled or booking not honoured...

 

[Apple]

I’m quite upset with over $2500 in travel bank and 200,000 velocity points all bound to be lost! Not happy Jan is an understatement..... great retirement gift - not(

 

[jakeseven7]

I’m quite upset with over $2500 in travel bank and 200,000 velocity points all bound to be lost! Not happy Jan is an understatement..... great retirement gift - not(

There is a chance the Velocity store may reopen for a period, who knows - so be ready to redeem quickly just in case.

 

[tomlee1986]

There is a chance the Velocity store may reopen for a period, who knows - so be ready to redeem quickly just in case.

I am not sure when that will happen either... I doubt that will happen for a while, until the situation is more stable with virgin australia.. I do realise they are separate companies, but they have a mess in their hands

 

[bigbadbyrnes]

I have a BNE PER flight for 22 May returning 25 May, booked 4 March originally. El cheapo fare class: TZGW0S

With the rescheduling via Melboure, its now flying out 23 May, cutting the length of the trip down by more than half. My understanding is usually VA would be liable to refund the trip in because it has been significantly altered due to the rescheduling - but I can't find this anywhere in the terms of service or conditions of carriage. Does any one know the piece of consume law I need to refer to when requesting a refund? (which I know they will refuse so I can in turn try a chargeback)?

 

[travel_bug]

I have a BNE PER flight for 22 May returning 25 May, booked 4 March originally. El cheapo fare class: TZGW0S

With the rescheduling via Melboure, its now flying out 23 May, cutting the length of the trip down by more than half. My understanding is usually VA would be liable to refund the trip in because it has been significantly altered due to the rescheduling - but I can't find this anywhere in the terms of service or conditions of carriage. Does any one know the piece of consume law I need to refer to when requesting a refund? (which I know they will refuse so I can in turn try a chargeback)?

Could this help, alongside VA's own customer compensation policy from the time you made your booking? I would argue in your corro (and then for your chargeback) that VA have actually cancelled your booked flights and attempted to place you on an alternative that is not suitable, and you should receive a refund in line with their customer compensation policy.

Hopefully then when VA respond with their COVID/administration response your card issuer will see that as enough for a chargeback.