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-   -   No 24 hour refund if using trip credit (https://www.flyertalk.com/forum/american-airlines-aadvantage/2068218-no-24-hour-refund-if-using-trip-credit.html)

hsumh316 Sep 5, 2022 12:31 pm


Originally Posted by USFlyerUS (Post 34574291)
I disagree. Adding a trip credit in the form of a previously used ticket and having to pay an add/collect is exactly this. I did this just last week. I cancelled an existing PNR, rebooked 15 min later applying the previously issued ticket, and paid an A/C. At no point in the process did I think I'd get a refund of the A/C if I cancelled within 24 hours. If I had held the ticket for several weeks or months, I'd still have thought the same.

I do concede AA should make this more explicit by saying that, if you want to apply a trip credit, that you should instead hold the reservation for 24 hours if you think you might cancel.

Here's another way to look at it: Back when we had change fees, would you have expected the $200 change fee to also be refunded if cancelled within 24 hours? To my knowledge, it never would have been, on any carrier.

I think we are just looking to get the trip credit portion refunded as trip credit and the cash portion as cash. Not looking to get the trip credit refunded as cash. I think AA should make it clear that if trip credit is used any additional cash used to purchase a different ticket will then become trip credit. United allows trip credit to be refunded as trip credit and additional cash as cash if cancelled within 24 hours.

WeekendTraveler Sep 5, 2022 1:56 pm

Based on my research, the DOT requires airlines to offer either:

1. 24-hour hold.
or
2. Refunds within 24 hours.

The DOT doesn’t require airlines to offer both.

Since AA offers 1, it doesn’t have to offer 2, so any lack of a refund for 2 would be governed by AA rules, not the DOT’s requirement.

I welcome all corrections if I’m wrong.

Stripe Sep 5, 2022 2:22 pm


Originally Posted by WeekendTraveler (Post 34574841)
Based on my research, the DOT requires airlines to offer either:

1. 24-hour hold.
or
2. Refunds within 24 hours.

The DOT doesn’t require airlines to offer both.

Since AA offers 1, it doesn’t have to offer 2, so any lack of a refund for 2 would be governed by AA rules, not the DOT’s requirement.

I welcome all corrections if I’m wrong.

AA effectively offers both, even though it doesn't have to. I have never had a problem putting a reservation on hold, ticketing it the next day, then cancelling for a refund the day after that.

However, the 24 hour refund policy gets murky when partially paying with a credit. I think that means no cash refund for any of it. Just a credit for the whole thing that probably expires when the original credit was set to expire. I can't find any T&Cs that address this scenario specifically.

WeekendTraveler Sep 5, 2022 4:58 pm


Originally Posted by Lohrip (Post 34567485)
Any ideas on how to proceed? I can file a complaint with the DOT but I assume they don't actually advocate for individual cases, right? It will just go into a repository of complaints? For $5000 I could hire a lawyer to help, if there are any lawyers that handle this kind of small airline-related case.

I had a similar issue: I placed several tickets on hold, paid for them in part using flight credits and AA charged much more than the fare that was on hold- and even more than the then-current online price. And for one of the new tickets, the agent definitely didn’t mention the total fare for the new ticket.

I checked my receipts both are labeled “exchange” and “ticket change”. Even though the new ticket has a new PNR and new ticket number.

I researched the CFR provisions and DOT guidance on point and do not see a basis for this.

I suggest a well-researched and well supported letter to the DOT, not just an online submission.

The DOT has penalized AA for refund violations (the documentation is on the DOT website), and the DOT states that it acted based on consumer complaints. Further, one guy submitted his own request for rulemaking and even though the DOT (under Bush II) declined to, it did consider it: https://www.transportation.gov/airconsumer/eo-2003-3-11

If anyone is interested in working on this together, please let me know.

jordyn Sep 6, 2022 9:19 am


Originally Posted by USFlyerUS (Post 34574291)
I disagree. Adding a trip credit in the form of a previously used ticket and having to pay an add/collect is exactly this. I did this just last week. I cancelled an existing PNR, rebooked 15 min later applying the previously issued ticket, and paid an A/C. At no point in the process did I think I'd get a refund of the A/C if I cancelled within 24 hours. If I had held the ticket for several weeks or months, I'd still have thought the same.

You might not have thought that, but what part of the experience was different in any way from booking a new ticket with, e.g., a gift card instead of a trip credit? How would someone that doesn't understand the underlying ticketing mechanics come to understand that they are somehow waiving the right to a 24 hour refund? As you yourself acknowledge, it's not called out in any way on the website.

jordyn Sep 6, 2022 9:24 am


Originally Posted by WeekendTraveler (Post 34574841)
Based on my research, the DOT requires airlines to offer either:

1. 24-hour hold.
or
2. Refunds within 24 hours.

The DOT doesn’t require airlines to offer both.

Since AA offers 1, it doesn’t have to offer 2, so any lack of a refund for 2 would be governed by AA rules, not the DOT’s requirement.

They don't have to offer both, but once they do the offer is binding, otherwise it would be an obvious bait and switch. (Which is actually the case here.) There's no exception to using a trip credit in any of the language around the 24 hour refund on their website.

seawolf Sep 6, 2022 3:24 pm


Originally Posted by Lohrip (Post 34567785)
Thanks Dave Noble. You say "hold an unused ticket for further travel...." In my experience I received a flight credit, and applied it to a future ticket (at least those are the words the AA agents used). But are you saying the reality was that my ticked was held for further travel, and the application of a flight credit to a different reservation was just a "shorthand" description but not really true?

Correct. Flight credit is simply portion of prior ticket which has not been used as evident by the ticket number remains unchanged when telling agent you have a flight credit.

Antarius Sep 6, 2022 3:36 pm


Originally Posted by seawolf (Post 34578166)
Correct. Flight credit is simply portion of prior ticket which has not been used as evident by the ticket number remains unchanged when telling agent you have a flight credit.

I don't disagree with your point, but it takes someone who knows a decent amount about how this works or cares enough to find out to be able to understand that.

There is no one in my family or friend group that this would be obvious to. And I'm confident that this statement applies to the vast majority of non airline and aviation geeks.

Credits are like store credit to most people. Must be used at the store, cannot be exchanged for cash and thats about it.

jordyn Sep 6, 2022 4:59 pm


Originally Posted by seawolf (Post 34578166)
Correct. Flight credit is simply portion of prior ticket which has not been used as evident by the ticket number remains unchanged when telling agent you have a flight credit.

As evidence that this theory is incorrect, you can apply up to eight flight credits to a single flight so obviously this is not consistently true.

WeekendTraveler Sep 6, 2022 4:59 pm


Originally Posted by seawolf (Post 34578166)
Correct. Flight credit is simply portion of prior ticket which has not been used as evident by the ticket number remains unchanged when telling agent you have a flight credit.

When I’ve placed reservations on hold and then called AA to pay for them with flight credits-and been charged more than the held fare was- the tickets that are issued have new ticket numbers, different than the cancelled ticket numbers.

Dave Noble Sep 6, 2022 5:30 pm


Originally Posted by Antarius (Post 34578198)
Credits are like store credit to most people. Must be used at the store, cannot be exchanged for cash and thats about it.

With store credit, this is a situation where the store is choosing to offer credit for some reason other than one where there is an entitlement to a refund. With store credit, the store can choose to impose restrictions on the use of credit - e.g. it could refuse a voluntary return of an item purchased on credit where it would accept that return when purchased with money

It seems from one of the replies above that this issue has previously been referred to DOT and it has sided with the airline - maybe the OP here will have a differemt response

WeekendTraveler Sep 6, 2022 5:41 pm


Originally Posted by Dave Noble (Post 34578478)
It seems from one of the replies above that this issue has previously been referred to DOT and it has sided with the airline

None of the enforcement actions on the DOT website indicate this but perhaps it just hasn’t been published.

Dave Noble Sep 6, 2022 6:24 pm


Originally Posted by WeekendTraveler (Post 34578494)
None of the enforcement actions on the DOT website indicate this but perhaps it just hasn’t been published.

I was going by the comment in post 41

hsumh316 Sep 7, 2022 3:01 am


Originally Posted by Dave Noble (Post 34578478)
With store credit, this is a situation where the store is choosing to offer credit for some reason other than one where there is an entitlement to a refund. With store credit, the store can choose to impose restrictions on the use of credit - e.g. it could refuse a voluntary return of an item purchased on credit where it would accept that return when purchased with money

It seems from one of the replies above that this issue has previously been referred to DOT and it has sided with the airline - maybe the OP here will have a differemt response

Usually the restrictions are stated at stores and this is where it is muddy with AA. I don’t think what AA is doing is wrong, I’m just saying they should be more transparent about it and that was the main complaint which DOT still has not done anything about. I think for most people they would think that they would get the refund of cash as cash and trip credit as trip credit. United does it that way. I actually did this with United prior to doing this with AA but each airline has their own policy which should be made clear.

DOT does say: “If our review of your complaint and the response from the company discloses a potential violation of our rules, we may pursue enforcement action. Generally, we pursue enforcement action on the basis of a number of complaints which may indicate a pattern or practice of violating our rules”

WeekendTraveler Sep 7, 2022 3:18 am


Originally Posted by hsumh316 (Post 34579445)
Usually the restrictions are stated at stores and this is where it is muddy with AA. I don’t think what AA is doing is wrong, I’m just saying they should be more transparent about it and that was the main complaint which DOT still has not done anything about. I think for most people they would think that they would get the refund of cash as cash and trip credit as trip credit. United does it that way. I actually did this with United prior to doing this with AA but each airline has their own policy which should be made clear.

DOT does say: “If our review of your complaint and the response from the company discloses a potential violation of our rules, we may pursue enforcement action. Generally, we pursue enforcement action on the basis of a number of complaints which may indicate a pattern or practice of violating our rules”

I agree that AA isn’t clear but should be. Just what does “hold” mean if AA doesn’t honor the fare that was placed on hold?


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