Coronavirus: Fears over money owed due to event cancellations

Customers could lose more than £2.5m spent on holidays and events cancelled due to coronavirus, trading standards in Wales have warned.

It said customer complaints had risen by nearly 200% compared to last year.

The holiday and wedding sectors are the worst affected by the coronavirus crisis, with many people still waiting for compensation.

Trading Standards Wales said some people were being offered a voucher instead of a refund.

Chris Hill, of Trading Standards, said nearly everyone in Wales had been affected.

"Some of these cases run into multiple thousands of pounds," he said.

"We've noticed that there's this outstanding £2.5m in consumer complaints about cancellations, but that number is just for people who have made complaints through Citizens Advice."

The body, which represents trading standards services across the 22 Welsh councils, said the true figure for outstanding refunds "would be significantly higher than that".

A common theme in complaints has been allegations some firms are pushing customers towards vouchers, when they are legally entitled to a full refund.

"Companies are entitled to offer a voucher but it's entirely up to the consumer whether they want that or a refund," explained Mr Hill.

"There cannot be any pressure from the trader on the consumer to get them to accept a voucher rather than the refund that they're entitled to.

"Sometimes the best way is to work together to find an amicable agreement."

But some customers have found that easier said than done, including Tracey Kinsey from Magor, in Monmouthshire.

She paid £1,029 through Love Holidays for a break to Greece with an older friend who was convinced the trip would be "her last".

She said after struggling to contact the company she was initially only offered vouchers before later being told she could begin applying for a refund after 1 July.

"The email said click this link to say what you want to do, I clicked the link and it did nothing, I just couldn't get through," she told BBC Wales.

"People need this money to feed their families.

"People might not think £1,029 is a lot of money, but for some people that's the difference between buying groceries or not, if they've been laid off."

Initially, Mrs Kinsey was refunded by her credit card company, but after a few days the money was recovered and she was told to take the matter up with the holiday firm.

"I was absolutely fuming," said Mrs Kinsey.

"Nobody wants to take responsibility. Nobody wants to step up. It's shocking.

"I know what I'm entitled to but a lot of people don't and I think the tourist industry will end up with a lot of money that's not theirs."

Love Holidays told the BBC it had investigated Mrs Kinsey's case, and had now recovered the cost of her flights and was processing the refund, which would appear in her bank account soon.

The company said it would also be contacting Mrs Kinsey "as a matter of urgency" to start the process of refunding hotel costs.

A spokeswoman added: "We appreciate that this is a worrying and uncertain time for many of our customers and we are doing all we can to assist them at this time.

"Unfortunately, due to the scale of cancellations involved, while we are working as hard as possible to process refunds, it is taking longer than usual to process refund requests."

The firm said it had updated its refund policy since Mrs Kinsey's holiday was cancelled, and is offering customers either cash refunds, amending bookings, or a credit voucher protected by the industry body Atol.

It said it had "actioned" 27,000 refund requests during the Covid-19 crisis, totalling £14m.

For others the expense has been less, but the prospect of losing money just as hurtful.

Imogen Morgan-Ford, 16, from Swansea, was looking forward to her prom in July - before it was cancelled, leaving her mother and grandmother fighting to try to reclaim £350 paid as a deposit to a dress shop.

"They wanted half up front," said Imogen's mother, Lynette.

"They took the measurements and said that they'd order the dress in and let me know."

The family said they heard nothing further but were refused a refund when they tried to cancel the order.

"The lady dealing with the dress must have got in touch with her solicitor," said Hillary, Imogen's grandmother. who also put money towards the dress.

"They said they hadn't broken the contract as they apparently ordered the dress and had it made.

"We have no proof the dress was ordered or the dress was made."

The family said they had wanted to see evidence that the dress existed, but were "worried" that pursuing the matter could leave them eligible to pay the rest of the cost.

"It was very important because you want to feel special and you want to look beautiful," said Imogen.

"I really liked the prom dress but it was a lot of money, so to waste the deposit of £350 and not get that back was a big disappointment."