Flying the Empty Skies Part IV - To Charge...and to Chargeback

You know how this works.  You type in your credit card information online, read it to an operator on the phone, or swipe it through a machine.  Bingo!  Your credit card company gives out money and then sends you a monthly bill reminding you how much you owe them with interest.  In return, you get something.  You get an item, an experience, a reservation, or to keep having cable television.  Most items we receive immediately or within a couple of business days.  Vacations, though, are often paid for well in advance and all you receive in return for that money is…a promise.  A promise of a hotel room.  A promise of activities and tickets.  A promise of a car to drive around.  And, of course, a promise of an airplane to take you there.  A promise is a promise is a promise.  Unfortunately, a promise can’t fly you to Hawaii, only an airline can.  But when the airline that promised you that flight can’t deliver, what do you do?

As I discussed in my last posting, if you paid for your ticket with cash or check, you can consider bringing a claim against the airline and many months later you may or may not see some money back.  If, however, you paid by a credit card, you may have another option that is both faster and more likely to keep you from being out all the money you spent on that airline ticket.

On the back of your credit card statement you should see an address you can write to if you wish to dispute a charge and receive a chargeback.  You can dispute several types of billing errors including: charges you did not authorize; charges for goods or services of different quality or quantity than what was represented; and charges for undelivered goods or services (as in plane tickets from airlines no longer flying).

So, that plane ticket you paid for on Aloha, ATA, or Skybus that you didn’t get?  Let your credit card company know right away so you don’t have to pay.  Here’s what you do:

1. Find the credit card statement where your charge for the flight appeared.

2. On the back of the statement, find the address to which you are supposed to report billing errors or disputes.

3. As soon as possible, send a letter to your credit card company at that address explaining that you did not receive the service that you paid for.  Time is important here.  In most cases, you’ll have sixty days from the date of issue of the statement where the charge first appears to make this claim.  Occasionally this can be extended, but don’t count on it.  That said, if 60 days pass before you realize that you can or should try to chargeback your airline tickets, send in the claim anyway.  You may also need to check to see if you should then submit the request for a “claim and defenses” chargeback instead of a “billing errors” chargeback.  Unlike billing errors, you have a little more time, usually a year, to submit a claim and defense chargeback.  Some other restrictions will likely apply, so check with your credit card company.

4. Confirm with your credit card company that you do not have to pay the disputed charge (but do pay the rest of the bill!), if you have not already done so.

5. Provide the credit card company with any information they ask for, such as copies of itineraries, etc.

6. Make sure your credit card company received your claim.

7. Wait for their response.  This might take a couple of months while your credit company researches everything to verify that you are entitled to a chargeback.  While it may seem like a no-brainer given the airline situations, they’re going to need to make sure you weren’t one of those lucky few who had another airline, such as Hawaiian, honor your ticket.  The companies are willing to help out, but they’ve got to protect themselves from dishonest people who might try to get a completely free flight out of the whole fiasco.

8. If your credit card company denies you a chargeback and you can confirm that you have met any required conditions, consider filing a complaint with your Attorney General’s office.

The bottom line is that you shouldn’t have to pay for what you didn’t get.  The way the system works, though, it can be very difficult to get your money back.  If you used a credit card instead of cash or a check your chances of recovery increase greatly.  Good luck and hopefully we’ll all be flying again soon!

Related Links:

• Click here to get the facts on fair credit billing.
• Click here to read an advisory on chargebacks from the California Attorney General's Office.