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Author Topic: Rail Travel Vouchers to be replaced by cash refunds/compensation. - BBC News  (Read 28305 times)
JayMac
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« on: June 06, 2015, 01:53:26 »

From the BBC» (British Broadcasting Corporation - home page):

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End of the line for rail compensation vouchers

Millions of rail passengers who suffer travel delays will soon be able to claim refunds in cash, after a major policy change, the BBC has learned. Up to now most train companies have only offered vouchers as compensation.

The voucher system has long been criticised by consumer groups, as vouchers cannot always be used online or to access the cheapest fares. The Rail Delivery Group, representing train operators and Network Rail, said the change would come in this summer.

"Planned changes to the National Rail Conditions of Carriage will enable passengers to claim their compensation in cash, instead of rail vouchers," said a spokesman. "This will be a welcome move for passengers."

It is not yet known whether customers with existing vouchers will be able to swap them for cash.

'Our money'

The move marks a major change in policy, as the current voucher system has been in place for around 20 years.

The news was welcomed by Transport Focus, which has campaigned on the issue for some time. James Daley, a consumer expert with Fairer Finance, called it "a victory for common sense".

It was also welcomed by Budd Shenkin and his wife Ann, two Californian tourists who were frustrated by the voucher system. After paying for first-class tickets on a train from Inverness to Edinburgh last month, they boarded the train to find no first class available. When they tried to get a refund at the ticket office, they were told they could only have vouchers - of little use to a couple only in the UK (United Kingdom) on holiday.

"They sold us seats that didn't exist - and then wouldn't give us our money back," said Ann, a retired lawyer.

But her husband Budd said he was pleased to see that good sense had now prevailed. "Implementation is always an issue, however," he told the BBC. "Nothing short of putting a credit onto the customer's credit card without a physical visit to the office should be acceptable."

After being approached by the BBC, ScotRail eventually agreed to refund their money.

Delay Repay

However, Transport Focus is still concerned that too few people claim refunds when their trains are delayed. In a survey published in 2013, it found that 88% of passengers entitled to compensation did not bother to ask for it.

And that's despite the fact that the rules on compensation have been widely toughened up. Nearly half of the 26 train operators have adopted the so-called Delay Repay guarantee, which means passengers are entitled to redress after a delay of as little as 30 minutes. Furthermore, those train companies cannot get out of paying by claiming that the delay was not their fault, because they, in their turn, can claim compensation from Network Rail if the delay was caused by signalling problems or other network issues.

The companies not signed up to Delay Repay usually offer compensation when a train is at least 60 minutes late.
http://www.bbc.co.uk/news/business-33008010

Somewhat out of the blue is this announcement. Very welcome it is too. Implementation and logistics will be interesting. Particularly when it's one TOC (Train Operating Company) receiving the request for compensation and another TOC responsible for compensating for the delay. Will it be cheques issued by post? A requirement for card/bank details to process payments? Vouchers exchangeable for cash?* Or multiple options? The devil will be in the detail.


*The Southern Railway brand of Govia Thameslink Railway already offer this.
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ChrisB
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« Reply #1 on: June 06, 2015, 09:02:08 »

Cheque where payment made by that method/cash & credit to same card that was used for payment seems logical.

Frankly I wouldn't want a cheque. The hassle in paying it in outweighs the usefulness of this change. Would hope the option for vouchers continues. I'm likely to be buying tickets far more oftrn that I visit a bank branch.

Can't see cash being an option, too much admin
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ChrisB
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« Reply #2 on: June 06, 2015, 09:04:23 »

And what happens if you don't have a bank account?...some don't...
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TaplowGreen
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« Reply #3 on: June 06, 2015, 09:33:17 »

Good news - if I pay for something in cash/by card, why shouldn't I receive it back in the same way?

I
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NickB
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« Reply #4 on: June 06, 2015, 09:55:15 »

Tfl moved to refunding directly to bank accounts last year, which saved me accumulating 100+ vouchers from them each year. Works much better in my view.

I will miss peeving the ticketing staff by turning up with several hundred vouchers to offset my annual season ticket purchase (takes over an hour to process) as it has become a tradition, but we have to roll with the times.

When do we get delay repay btw?
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JayMac
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« Reply #5 on: June 06, 2015, 13:38:02 »

Delay Repay will be introduced on or by the first anniversary of the next franchise start date. So, on or before 20th September 2016.
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Brucey
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« Reply #6 on: June 06, 2015, 16:02:24 »

I don't see why the claim forms cannot have an option for the customer to choose their repayment preference, either cheque or payment into bank account.  Maybe the cheque could be payable for cash at the drawing bank for those without bank accounts.

Refunding to a credit/debit card would add an extra complexity, especially where the ticket retailer is not the compensating TOC (Train Operating Company).
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ChrisB
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« Reply #7 on: June 06, 2015, 16:09:26 »

I don't see why the claim forms cannot have an option for the customer to choose their repayment preference, either cheque or payment into bank account.  Maybe the cheque could be payable for cash at the drawing bank for those without bank accounts.

Coo, when disd you last see an uncrossed cheque? Not possible, and hasn't been for years.

Quote
Refunding to a credit/debit card would add an extra complexity, especially where the ticket retailer is not the compensating TOC (Train Operating Company).

Agreed - and the card processing companies fine you for holding onto card details beyond, I think, a few weeks anyway....
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Brucey
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« Reply #8 on: June 06, 2015, 16:16:34 »

I don't see why the claim forms cannot have an option for the customer to choose their repayment preference, either cheque or payment into bank account.  Maybe the cheque could be payable for cash at the drawing bank for those without bank accounts.

Coo, when disd you last see an uncrossed cheque? Not possible, and hasn't been for years.
Crossing a cheque with "account payee only" makes it non-transferable (s81A, Bill of Exchanges Act 1882 as amended).  There is nothing stopping the TOC (Train Operating Company) and their bank arranging a system to allow the cashing of such an instrument.
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ChrisB
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« Reply #9 on: June 06, 2015, 16:23:08 »

Sorry, I think your wrong.

"Account Payee only" means what you say it does.

Crossing a cheque (or any instrument like a postal order, means it has to be paid into an account & is not encashable.

Both means it can only be paid into an account in the name of the payee.
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TaplowGreen
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« Reply #10 on: June 06, 2015, 16:44:39 »

........surely a facility can be put in place whereby the customer could just present their tickets with a claim form at "any manned station" and get a refund via cash or card?

If it's a different TOC (Train Operating Company) then they can have the discussion with each other afterwards and recharge as necessary.............customer is supposed to come first, remember? Especially where something has gone wrong?
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JayMac
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« Reply #11 on: June 06, 2015, 16:46:58 »

Sorry, I think your wrong.

"Account Payee only" means what you say it does.

Crossing a cheque (or any instrument like a postal order, means it has to be paid into an account & is not encashable.

Both means it can only be paid into an account in the name of the payee.

Less than six months ago I received a cheque from British Gas for which I had the option to cash it at any branch BG (Brake Gangway (carriage))'s bank, HSBC. I did just that rather than wait for clearance.

It can be done.
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ChrisB
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« Reply #12 on: June 06, 2015, 17:11:00 »

It can - likely it was uncrossed....
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ChrisB
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« Reply #13 on: June 06, 2015, 17:12:11 »

........surely a facility can be put in place whereby the customer could just present their tickets with a claim form at "any manned station" and get a refund via cash or card?

If it's a different TOC (Train Operating Company) then they can have the discussion with each other afterwards and recharge as necessary.............customer is supposed to come first, remember? Especially where something has gone wrong?

The TOCs, quite rightly, would want paying for the staff involved in this....
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TaplowGreen
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« Reply #14 on: June 06, 2015, 17:19:33 »

........surely a facility can be put in place whereby the customer could just present their tickets with a claim form at "any manned station" and get a refund via cash or card?

If it's a different TOC (Train Operating Company) then they can have the discussion with each other afterwards and recharge as necessary.............customer is supposed to come first, remember? Especially where something has gone wrong?

The TOCs, quite rightly, would want paying for the staff involved in this....

....the savings they will be making from not having to constantly send out vouchers will help with that.

Why not suggest solutions rather than constantly flagging up problems?
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