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Consumers relying on bank refunds from debit card transactions have been given a warning that time limits could leave them out pocket, a report revealed today. The shortcomings of the so-called 'chargeback' refund process were exposed after the collapse of a Wiltshire ballooning company earlier this month, according to BBC's MoneyBox.Card scheme rules say chargeback claims must be submitted within 540 days of a transaction being made. Many customers of Go Ballooning, who had bought flight vouchers as far back as 2007, came up against the time limit when they tried to claim.
An estimated 14,000 customers are still waiting to see if they will get their money back after the firm's collapse.The company has few assets to repay the estimated £2million it owes, said the BBC report, so the directors have recommended that customers apply for a refund through their bank if they have paid by debit or credit card. Transactions by credit card are protected by provisions under Section 75 of the Consumer Credit Act, under which the credit card company pays. But a customer's bank will use the chargeback process, under Visa and Mastercard rules, where a refund is demanded from the bank of a business that has failed to supply goods or services. There are some time limits to this process, as discovered by Go Ballooning customers who bought their vouchers several years ago.....Read more here
An estimated 14,000 customers are still waiting to see if they will get their money back after the firm's collapse.The company has few assets to repay the estimated £2million it owes, said the BBC report, so the directors have recommended that customers apply for a refund through their bank if they have paid by debit or credit card. Transactions by credit card are protected by provisions under Section 75 of the Consumer Credit Act, under which the credit card company pays. But a customer's bank will use the chargeback process, under Visa and Mastercard rules, where a refund is demanded from the bank of a business that has failed to supply goods or services. There are some time limits to this process, as discovered by Go Ballooning customers who bought their vouchers several years ago.....Read more here