I did some additional research on this and since you held a refundable fare, your ticket should have been refunded when you originally requested. Unfortunately, our Refunds Department denied your request in error, and I sincerely apologize for the oversight. We have quality measures in place, but will continue to work to improve our service so we may prevent a recurrence of this type of experience.
Yup, and this oversight would have been permitted to remain except for the DOT. Oh, and it doesn't hurt us.