Sisters in Law: How do I deal with holiday cancellations?

The NSW woman is fighting to get her money back from a business that cancelled her booking and now refuses to return her emails.

Welcome to Sisters In Law, news.com.au’s weekly column solving all of your legal problems. This week, our resident lawyers and real-life sisters Alison and Jillian Barrett from Maurice Blackburn advise on how to deal with providers cancelling holiday accommodation.

Question:

I booked a campsite in NSW for Easter weekend and paid a premium rate as it was a long weekend. Unfortunately, a week before the trip I had an email from the privately-owned campsite saying the site was flooded and they wouldn’t be able to accommodate us.

Instead, they said, we’d be given a credit note to use at a later date. I felt really sorry for them that they’d had such bad luck and said it was no problem to send us credit.

However, when the credit note came it had all sorts of stipulations attached to it including: Credit cannot be used during peak times – All NSW & ACT long weekends, Christmas school holidays and potentially other peak events within the area. Please restrain from requesting us to override this.

I replied by saying we wouldn’t be able to take a trip out of peak time (we are teachers and have young kids in school) and asked them to reconsider but they didn’t reply.

I completely understand small businesses are doing it tough but it feels like they are holding my money hostage. I’ve not only had my trip cancelled but I feel like I’ve lost my money! Is there anything I can do about this? – Krishna, NSW

‘It feels like they are holding my money hostage,’ the mum said. Picture: iStock image

Answer:

We’re sorry to hear your Easter holiday was not as you had planned.

Navigating the cancellation policies of accommodation providers following Covid-19 is already quite complicated, without throwing a natural disaster like flooding into the mix.

Unfortunately you won’t automatically be entitled to a refund. The options available to you will depend on the nature of your agreement with the campsite, and the terms and conditions of your booking.

You have done the right thing by contacting the campsite directly to find out where you stand and to try to resolve the issue.

You should review the initial contract and see if the fine print allows for a credit to only be used in off-peak periods.

Review the initial contract and see if the fine print allows for a credit to only be used in off-peak periods. Picture: iStock

If the contract does stipulate this, then on the face of it you may not be entitled to the full refund, or be able to use the credit in peak periods.

You do however have further rights under the Australian Consumer Law which likely apply to your situation.

Where there is a natural disaster and the accommodation has been destroyed (which sounds like what has occurred here with the site being flooded) then the law says the contract has been “frustrated”.

This just means that it’s impossible to carry out the contract due to events beyond all parties’ control, and both parties will be released from it.

You should contact the campsite again and point out that the contract has been frustrated due to a natural disaster.

You could reach out to NSW Fair Trading and the ACCC. Picture: iStock

You can tell them that you are happy to have a credit note, but that you’ll only be able to use it in peak periods.

Further, you should state that if that is not suitable, then you would like a full refund in accordance with the Australian Consumer Law.

Make this request in writing and let them know that if you don’t hear back from them within seven days you will be contacting NSW Fair Trading and the Australian Competition and Consumer Commission (ACCC) to make a complaint.

The ACCC and Fair Trading will assess your complaint and determine if they can assist you in reaching a resolution.

You may be entitled to take your complaint to the NSW Civil and Administrative Tribunal.

The Tribunal can provide information on how to lodge a claim and the dispute resolution procedure.

You could request a chargeback on your credit card. Picture: iStock

Some other options you may like to consider include:

1. Travel insurance: More people are purchasing travel insurance, even when travelling within Australia, due to concerns about Covid-19 cancellations and natural disasters. If you purchased travel insurance, then review the contract’s fine print and contact your provider to see whether you’re entitled to a refund.

If your claim is rejected, you can lodge a complaint or request an internal review.

If your claim remains rejected, then you can lodge a complaint with the Australian Financial Complaints Authority.

2. Request a ‘chargeback’: If you used a credit card to purchase the accommodation, contact your credit card provider and request a “chargeback” for “services not rendered”. The provider will investigate and run the dispute for you.

Consider getting independent legal advice from your local community legal centre, legal aid office or lawyer for more specific information about what options are available and those that suit your circumstances.

This legal information is general in nature and should not be regarded as specific legal advice or relied upon. Persons requiring particular legal advice should consult a solicitor.

If you have a legal question you would like Alison and Jillian to answer, please email [e-mail]

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Originally published as Sisters in Law: How do I deal with holiday cancellations?