Automatic refunds for airline passengers goes into effect
Oct 29, 2024
HONOLULU (KHON2) -- Fighting for a refund with airlines is now in the past after a new law for travelers to get "automatic refunds" in some instances just went into effect.
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While traveling can sometimes be a gamble, airline passengers can now feel like their money is safe because they will be refunded in certain situations.
"I think it's great, obviously," said Linda Matsumoto, traveler. "Who wouldn't think so. Rather than having to fight for your money you know."
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"I think it's an excellent idea," said Jo Schlesinger, traveler. "It holds the airlines accountable for their behavior and when airlines are falling below standards that they set for themselves, that they should be accountable for it."
A new law by the US Department of Transportation started this week giving airlines strict timeframes for refunding passengers for canceled or significantly delayed flights, which is defined as three hours or longer on domestic flights and six hours or longer on international.
Passengers must now be refunded within seven business days if paid by credit card and 20 calendar days for other payments. Previously, there was no timeframe.
"I think it's fair," said James Totland, traveler. "Because any time I do, change a flight, they're gonna charge me. And if they're going to cancel a flight, they should refund my money. Absolutely."
The law also requires refunds for services paid for but not provided, like WiFi or entertainment. Baggage fees must also be refunded for any items not delivered within 12 hours of arrival.
"I know that there are things that get in the way like weather and stuff, it's not that," said Schlesinger. But you know you should be able to get your money back right away or it should be a seamless approach."
There is an exception to the refund rule for delays. Travelers will only get refunded if they decide not to fly the same airline, whether that be for the delayed flight or any alternative flights.
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The Better Business Bureau said the new rules are great for consumers and also helps a key factor in building good business - trust.
"I like to say that trust is the oil that makes that engine run," said Dale Dixon, Better Business Bureau. "Yeah, there are some other things that are needed, but without trust, a transaction between a buyer and a seller just really gets bogged down and will ultimately break."