Go Back  FlyerTalk Forums > Travel&Dining > Online Travel Booking and Bidding Agencies
Reload this Page >

24 hour refund on Expedia and my DOT complaint

24 hour refund on Expedia and my DOT complaint

Old Aug 22, 2017, 3:37 pm
  #1  
A FlyerTalk Posting Legend
Original Poster
 
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,188
24 hour refund on Expedia and my DOT complaint

I sent this to DOT on August 17. I've redacted a bit, but it explains the situation.

On August 5, I booked a flight itinerary on expedia.com.

The Expedia itinerary number is 7xxxxxxxxxxx2. Later that day, I called to cancel for a refund. The transaction posted to my credit card on August 6 in the amount of $6,xxx.xx. I called them on August 17 (9 business days later), as I had not yet received a refund, and they told me it would take 6-8 weeks.

In the past, DOT has issued consent orders (for example, https://www.transportation.gov/sites..._2013-8-27.pdf) with the following statement:

"Regulation Z of the Board of Governors of the Federal Reserve System, 15 U.S.C. 1601-1693r and 12 CFR Part 226 (Regulation Z) and the related Department of Transportation (Department) implementing rule, 14 CFR Part 374, establishes that, with respect to refund requests involving airline tickets purchased with a credit card, a creditor—here United—must transmit a credit statement for a passenger refund to the credit card issuer within seven business days of receipt of full documentation for the refund requested."

Expedia is in violation of these regulations.
So in summary, they refused to issue the refund, and want me to wait 6-8 weeks. As it stands right now, I have over $6000 extra on my credit card. Since the statement has closed, this is now affecting my credit score, and if I am unable to pay off the balance by the due date (not really an issue in my case, but it's a LOT of money to have to front for something I ended up buying elsewhere), I'll have to pay interest too. So the regulations are clearly there to protect consumers.

I received this email on August 18 (1 day later).

GENERAL COUNSEL
1200 New Jersey Ave., S.E.
Washington, DC 20590

Case # PC201708xxxx

Dear Mr. Kennedy:

This responds to your communication regarding Expedia.com. The U.S. Department of Transportation seeks to ensure that all airline passengers are treated fairly. Complaints from consumers are helpful to us in determining whether the airlines are in compliance with our rules and to track trends or spot areas of concern that warrant further action.

Based on the information you have provided, your complaint appears to fall under the Department's rules. I will forward your complaint to the company and ask it to respond directly to you with a copy to us. I will review the company's response. If you need to contact me please email me at [email protected]. Please include your name and case number (see above). I will make every effort to reply to your message within one business day.

If my review of your complaint and the response from the company discloses a potential violation of our rules, our office may pursue enforcement action. Generally, our office pursues enforcement action on the basis of a number of complaints which may indicate a pattern or practice of violating our rules. Your complaint may be among those considered and may lead to appropriate enforcement action including the assessment of civil penalties. However, our office has no authority to order compensation for individual complainants.

I have entered your complaint in our computerized industry monitoring system, and it will be counted among the number of complaints filed against this airline in our monthly Air Travel Consumer Report. This report allows consumers and air travel companies to compare the complaint records of individual airlines and tour operators. The data in this report also serve as a basis for rulemaking, legislation and research. Consumer information for air travelers, including the Air Travel Consumer Report and our pamphlet Fly-Rights, a Consumer's Guide to Air Travel, can be found on our website: www.transportation.gov/airconsumer.

Thank you for taking the time to contact us.

Sincerely,

xxxxxxxxxxxx
Aviation Consumer Protection Division
Office of Aviation Enforcement and Proceedings
Still waiting, but I'm glad they're taking it seriously. Expedia's refund procedure is certainly not clear (I understand if it can't be instant, but this is a bit ridiculous), but apparently it's in violation of DOT regulations too.

I'm not looking for advice, just offering my experience on the matter, and confirmation that this is not permitted.

p.s. as of this post, I still haven't received a refund.

Last edited by canadiancow; Aug 22, 2017 at 5:07 pm Reason: Redacting an email address
canadiancow is offline  
Old Aug 22, 2017, 4:44 pm
  #2  
 
Join Date: Jan 2016
Location: YYZ
Programs: FOTSG Tangerine Ex E35k (AC)
Posts: 5,612
Interesting to know it's 7 days. I've been told 7-10 days or even longer on credit card refunds a few times in the past. Good luck and keep us updated.

I personally won't use Expedia for airlines any more due to past issues. Their customer service was atrocious.
jc94 is offline  
Old Aug 25, 2017, 10:12 am
  #3  
Original Member
 
Join Date: May 1998
Location: NYC
Programs: AA 2MM, Bonvoy LTT, Hilton Diamond
Posts: 14,620
14 CFR Part 374 makes DOT responsible for enforcing Regulation Z on air carriers. Expedia is not an air carrier.

I hope you included airline and ticket# in your letter to DOT. Otherwise, it just will delay the process as DOT will have to figure out what which airline has your money.

Just call your credit card company and dispute it.
seawolf is offline  
Old Aug 25, 2017, 11:24 am
  #4  
Suspended
 
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Why not a simple credit card chargeback? Simply note that Expedia has promised, but not provided a refund.

DOT can't enforce against Expedia because it is not a commercial air carrier so tardiness in issuing the refund does nothing here.
Often1 is offline  
Old Aug 25, 2017, 11:48 am
  #5  
A FlyerTalk Posting Legend
Original Poster
 
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,188
Originally Posted by Often1
Why not a simple credit card chargeback? Simply note that Expedia has promised, but not provided a refund.

DOT can't enforce against Expedia because it is not a commercial air carrier so tardiness in issuing the refund does nothing here.
Why is Expedia an option in the dropdown on the DOT complaint form if DOT can't do anything?
canadiancow is offline  
Old Aug 25, 2017, 11:51 am
  #6  
Suspended
 
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
It can send the complaint to Expedia and enforce the refund. But, the "timeliness" provision is specifically limited to "commercial air carriers."

That doesn't affect you, however. The proceeds of a fine go to the US Treasury. You get your refund one way or the other.

The CC chargeback route is simply easier because it means a refund relatively instantly.
Often1 is offline  
Old Aug 25, 2017, 1:01 pm
  #7  
Original Member
 
Join Date: May 1998
Location: NYC
Programs: AA 2MM, Bonvoy LTT, Hilton Diamond
Posts: 14,620
Originally Posted by canadiancow
Why is Expedia an option in the dropdown on the DOT complaint form if DOT can't do anything?
Because there are other laws DOT do enforce which covers travel agencies such as code-share disclosure.

Regulation Z applies to Expedia but not 14 CFR Part 374. Easiest and quickest route is to dispute with credit card issuer. Try FTC if you want Regulation Z enforced against Expedia.
seawolf is offline  
Old Sep 5, 2017, 2:29 pm
  #8  
A FlyerTalk Posting Legend
Original Poster
 
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,188
I received a letter from Expedia over the weekend.

This is manually transcribed, so there may be typos.

August 29, 2017

Scott Kennedy
[address redacted]

Re: DOT Case Number PC201708xxxx

Dear Mr. Kennedy:

Thank you for allowing us the opportunity to address your concerns. At Expedia, we take customer complaints and feedback seriously, and strive to provide our customers with a great experience.

Our records indicate on August 5, 2017, you self-booked round-trip flight for one passenger on Expedia.com. The flights were operated by [airline redacted], departing from San Francisco, CA to [destination redacted] on [date redacted], and returning [date redacted].

On August 5, 2017, you contacted our customer service and requested the cancelation of your reservation. Since your flights were successfully voided within 24 hours of purchase, the temporary, pending authorization to deduct $6,xxx.xx from your account, should have been released. These authorizations typically release within 24-48 hours. We request that you contact your financial institution, if the authorization has not been released. If your financial institution is not able to assist, please send us bank statements showing that the amount of $6,xxx.xx was charged.

We thank you for allowing us the opportunity to address the issues brought to our attention. If you have further questions or concerns regarding this matter, please feel free to contact us.

Sincerely,
[what appears to be an actual signature]
[name redacted]
Corporate Customer Service.
For the record, the charge posted to my card. It's not a "temporary authorization".

I guess I'll call Chase and read the letter to them, and see what they say.
canadiancow is offline  
Old Sep 5, 2017, 3:27 pm
  #9  
Original Member
 
Join Date: May 1998
Location: NYC
Programs: AA 2MM, Bonvoy LTT, Hilton Diamond
Posts: 14,620
If you see charge in Chase card, just dispute it.
seawolf is offline  
Old Sep 18, 2017, 9:02 pm
  #10  
A FlyerTalk Posting Legend
Original Poster
 
Join Date: Sep 2012
Location: SFO
Programs: AC SE MM, SQ Silver, Bonvoy Tit LTG, Hyatt Glob, HH Diamond
Posts: 44,188
Okay, it took a bit of time (this is a rather large charge to dispute), but Chase took care of it. They said Expedia has the right to dispute the chargeback, although I can't see that happening.

I still don't understand what Expedia was thinking.
canadiancow is offline  

Thread Tools
Search this Thread

Contact Us - Manage Preferences - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

This site is owned, operated, and maintained by MH Sub I, LLC dba Internet Brands. Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Designated trademarks are the property of their respective owners.