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Virgin Australia Goes Into Voluntary Administration
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Credit card refunds
Can you reverse the charge from a credit card payment
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That depends on the bankruptcy laws of Australia. I wouldn't be surprised if, once the administrators take over, you can't charge back.
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Virgin Australia newsroom https://newsroom.virginaustralia.com...administration
21 April 2020: Virgin Australia Holdings Limited (ASX: VAH) (Virgin Australia Group or Group) has entered voluntary administration to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis.The Group’s Board of Directors has appointed Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes of Deloitte as voluntary administrators of the company and a number of its subsidiaries. Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration. <snip> https://www.executivetraveller.com/n...administration Virgin Australia enters voluntary administration Virgin Australia's board has appointed Deloitte as voluntary administrators of the company. <snip> ABC.net.au -> https://www.abc.net.au/news/2020-04-...ation/12167814 As expected. Has been struggling for some years Yesterday [Updated yesterday at 8:07pm] https://www.abc.net.au/news/2020-04-...vency/12165550 <snip> "The sale and subsequent repurchase of part of the frequent flyer business has left it loaded with debt, with most of the fleet and the frequent flyer business locked up by secured creditors." He said a government bailout, if put in place without insolvency, would "delay and obstruct the necessary restructuring and increase the risk that Virgin ultimately ends up like Ansett". He also pointed out that about 75 per cent of the debt is believed to be owed to foreign lenders. "A bailout of Virgin without an insolvency is likely to result in hundreds of millions of dollars being transferred from Australian taxpayers to foreign lenders," Mr Rochford said. <snip> |
Originally Posted by LondonElite
(Post 32308324)
That depends on the bankruptcy laws of Australia. I wouldn't be surprised if, once the administrators take over, you can't charge back.
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Originally Posted by LondonElite
(Post 32308324)
That depends on the bankruptcy laws of Australia. I wouldn't be surprised if, once the administrators take over, you can't charge back.
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Originally Posted by docbert
(Post 32313882)
It shouldn't matter. Your credit card relationship is with your card issuer. Whether they can get the money back from Virgin is their issue, not yours.
There is no bankruptcy. Nothing like Ansett. Staff are still being paid, maybe not as much. |
Originally Posted by docbert
(Post 32313882)
It shouldn't matter. Your credit card relationship is with your card issuer. Whether they can get the money back from Virgin is their issue, not yours.
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Can someone clarify if you had booked a ticket with miles is it still valid?
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Originally Posted by LondonElite
(Post 32314281)
What does it matter what channel you use? If the card issuer doesn't get the money from an airline in administration, you won't be getting any money from the card issuer.
Chargeback is not a service offered by your bank. It is offered by the payment mediator (Visa, Mastercard...). A chargeback is bank to bank. The merchant's bank has to demonstrate that the conditions were met (within the operating conditions set by Mastercard, Visa, etc) and if not they refund the amount and then reclaim that from the merchant. It is not something that banks really have a great deal of wiggle room. If the Merchant is in administration - that means the merchant's bank may not be able to reclaim the money. But it does not stop them being obliged to pay it back. The system is supposed to encourage banks to be responsible in giving access to receive payments by Visa, Mastercard, etc.... Merchants who suffer high chargeback rates get punished - not just with the admin fee but the banks may remove their access to Visa, etc, or may require a higher "setback" - money they keep hold on in case of future chargebacks. There may be additional statutory protections imposed by governments on their banks, but chargebacks are run by Visa, Mastercard, etc, and are fairly standardised globally. |
Originally Posted by s0ssos
(Post 32314488)
Can someone clarify if you had booked a ticket with miles is it still valid?
Keep an eye on things because if VA is dissolved or goes into liquidation then it may change, but for now it's just business as usual.
Originally Posted by LondonElite
(Post 32314281)
What does it matter what channel you use? If the card issuer doesn't get the money from an airline in administration, you won't be getting any money from the card issuer.
If your credit card issuer decides that you are owed a refund, they will give you a refund. It's part of their consumer protection services. They will go after that $$, but even if they fail you keep your refund. |
Deloitte fee is it too high ?
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Originally Posted by OZFLYER86
(Post 32313919)
one thing is for sure. Banks(credit cards) never lose. They are not going to allow a charge back, if they haven't got the airlines funds.
There is no bankruptcy. Nothing like Ansett. Staff are still being paid, maybe not as much. If the carrier fails to provide a service, bankrupt or no, then you can be entitled to charge back if paid with a Credit Card. If the banks cannot recover from the merchant, it is the bank's problem.
Originally Posted by CPMaverick
(Post 32316909)
...
If your credit card issuer decides that you are owed a refund, they will give you a refund. It's part of their consumer protection services. They will go after that $$, but even if they fail you keep your refund. |
Originally Posted by serfty
(Post 32319639)
That is incorrect (as far as Australia goes).
If the carrier fails to provide a service, bankrupt or no, then you can be entitled to charge back if paid with a Credit Card. If the banks cannot recover from the merchant, it is the bank's problem. I was looking at my New Zealand Westpac MasterCard, according to there website. You can claim back 30 days from the statement issued for that transaction, problem being with an Airline you off the make the payment months before you were to get the service. Ive got an AKL-BNE-DPS trip that was planned for this Monday, VA obviously canceled the flights. But would only offer an travel credit, even though they are very unlikely to be able to ever be used by some based in New Zealand. |
Originally Posted by serfty
(Post 32319639)
That is incorrect (as far as Australia goes).
If the carrier fails to provide a service, bankrupt or no, then you can be entitled to charge back if paid with a Credit Card. If the banks cannot recover from the merchant, it is the bank's problem. Doesn't matter what consumer law says, you cannot get blood from a stone. |
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