Consumer complaint received 2020-05-29
Company: CAPITAL ONE FINANCIAL CORPORATION
State: OH
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
I am writing in regards to a Credit Card Dispute with Capital One ( Visa ). My disputed charge is in regards to the Merchant : XXXX. The disputed transaction is regarding a vacation package ( 4 Roundtrip Airline Tickets + 2 All Inclusive Resort Rooms ) that I purchased from XXXX on XX/XX/2020 totaling {$5500.00}. The disputed amount is specifically related to the airfare, in which I was charged a total of {$1800.00}. 

I filed a credit card dispute with Capital One based on the Fair Credit Billing Act and my inability to resolve the matter with the merchant after a good-faith effort. I purchased a service ( 4 Roundtrip Airline Tickets ) and that service was not provided ( canceled by the airline ). 

Supporting documentation was mailed to Capital One on XX/XX/2020 and faxed on XX/XX/2020. 

A letter was received in the mail from Capital One on XX/XX/2020 ( Dated XX/XX/2020 ) stating my case was closed as the merchant already credited my account. I called and uploaded documentation that same day ( XX/XX/2020 ) proving the refund issued on my account was related to a resort room that was booked under the same itinerary ( {$1800.00} was the refunded amount and was not related to the disputed amount for airfare of {$1800.00} ). The total package price was {$5500.00} and a full refund on the entire package was owed. To date, only {$3600.00} has been refunded of the {$5500.00} paid. 

I called Capital One on XX/XX/2020 for a status update and to verify if any additional information was necessary to support by dispute. I was informed that the charges would stand and my case was closed. I requested to be transferred to a manager and spoke with XXXX at CapitalOne. He stated that refunds can not be forced and the merchant refused my refund. I understand the merchant refused my refund and that is precisely why I escalated my case via credit card dispute. I wanted to exercise my right as a consumer to utilize the protections laid out in Fair Credit Billing Act. I paid for a service that I did not receive. 

I disagree with the results of the Capital One Investigation as supporting evidence was submitted ( multiple times ) to prove the services paid for were not received. I have not ( yet ) been provided with any documentation to support why I owe the money for services not received. To date, I have not received a refund from XXXX for the disputed airline-initiated canceled flights. During my phone call with XXXX today ( Manager at Capital One ), he indicated that XXXX provided an airline credit and my case was closed. An airline credit is not what I agreed to at the time of purchase and per my recent check on flight prices, I was unable to find 4 roundtrip tickets to the same destination at the price of my travel vouchers. Thus, I have not been provided with the services that I agreed to purchase from XXXX because even if I wanted to book future travel with the airline credit ( assuming XXXX remains in business ), I would be forced to spend more than what I originally agreed to pay for this service. The credit also stipulates that I must use XXXX and book travel to XXXX, which we no longer have a need for travel to XXXX because the event we were going for has ended. For these reasons, it is evident that I did not receive the service I paid for and I was offered a lesser item ( airline credit ), in which I would be forced to add money to utilize. 

Also, I was informed that XXXX had 30 days to respond to my dispute with Capital One. It is my understanding that they responded after this timeframe and I was provided a very small window to provide any documentation since it had to be reviewed within 60 days of the date the dispute was initiated ( XX/XX/2020 ). The 60 day deadline is today, XX/XX/2020, and I do not feel that my documentation was thoroughly reviewed and I was not provided an adequate response on why I am not due a full refund. 

The US Department of Transportation ( DOT ) dictates the rules for any airline with flights within the United States. DOTs leadership is provided by the Secretary of Transportation in all matters related to federal transportation programs. The Office of the Secretary oversees national transportation policy and promotes implementation of international transportation agreements and enforcing airline consumer protection regulations. The US Department of Transportation is the governing body over airlines and third party travel agencies. 

Per the U.S. Department of Transportation, Flight Cancellations : If your flight is cancelled, you are entitled to a refund for the unused transportation even for non-refundable tickets. In recent weeks, the U.S. Department has issued additional statements as its been flooded with complaints of these credits or vouchers where full refunds are due. 

On Friday XX/XX/2020 the U.S. Transportation Department ordered airlines to fully refund airfare to passengers whose flights have been canceled during the outbreak of Covid-19 and also stated The obligation of airlines to provide refunds, including the ticket price and any optional fees charged for services a passenger is unable to use, does not cease when the flight disruptions are outside of the carriers control. This served as a reminder to airlines ( Third Party Travel Companies ) that refunds are not negotiable and that COVID-19 is not an excuse for holding passengers money. A second warning was issued by The Department of Transportation just last week again, warning airlines/travel companies to provide refunds when airlines cancel flights. 

Upon purchase of a ticket at XXXX, you are informed that XXXX follows all policies and guidelines set by the airline. Per XXXX policy : by purchasing an airline ticket, you agree to the terms of the Contract of Carrier ( airline policy ). Both XXXX XXXX and XXXX state they are compliant with DOT ( the governing body over the airline industry ), and indicates that refunds are allowable for flights canceled by the airline. Thus the original terms of agreement are in accordance with the U.S. Department of Transportation and again, points to the fact that a full refund is due on the flights cancelled by the airline. 

I have been directed towards new Covid Policies ; These new policies do not change the policies that were in effect and agreed upon at the time of airline ticket purchase. Per the Contract of Carrier : Your travel is governed by the rules that were in effect on the date you purchased your ticket and Flight Delays/Cancellations : If there is a flight cancellation, diversion, or delay greater than 90 minutes, the airline will refund the unused portion of the ticket and unused ancillary fees in the original form of payment in accordance with Rule 22. The Contract of Carrier Rule 19 deals with Flight Cancellations/Delays and Rule 22 outlines Payment Refunds. Rule 22 states : Involuntary Refunds : If a refund is required because of XXXX failure to operate as scheduled, the following refund will be made to you : 1. ) if no portion of the ticket has been used, the refund will be in the amount equal to the fare paid. 

My dispute with Capital One ( XXXX ) was based on the simple fact that the XXXX failed to provide the service I paid for, which violates the Fair Credit Billing Act ( FCBA ). The FCBA says you can not be charged for a product/service that you didnt receive or for a product that you did not agree to buy. I have not agreed to accept different compensation/credit for the flights purchased as anything less than a full refund is unacceptable and the issued credit will not even cover 4 roundtrip tickets at the current listed prices. 

The relationship between a consumer and a travel service provider is a contractual one. The consumer has to pay and the merchant has to deliver the agreed/advertised services. XXXX failed to abide by the terms and conditions agreed to as the service ( flights ) were cancelled by the airline and no appropriate substitutions were offered. 

To summarize, XXXX has refused to honor my request for a full refund in the amount of {$1800.00}. A failure to honor this request is a violation of Consumer Protections laid out by The U.S. Department of Transportation, a violation of the terms I agreed to upon purchasing airline tickets on the XXXX website ( agreed to follow the Contract of Carrier, U.S. Department of Transporation Rules and Regulations ), and a violation of the Fair Credit Billing Act. Consumer rights : if the airline makes the changes ( cancellation ), you are due a refund. I am due a full refund from XXXX as evidenced by the cited policies and governmental regulations and Capital One has failed to provide sufficient documentation that my disputed case ( XXXX ) was actually reviewed or why they feel the charges are substantiated.

Company response to consumer: Closed with explanation