View Full Version : Bankruptcy Compensation
08-31-2010, 12:43 AM
My son is holding a Mexicana ticket from LAX - BOG in December.
My question is how much can he expect to get back? How long will it take? He used VISA to purchase the ticket. He is beginning the chargeback process. He was directed to first attempt to go through Mexicana for a credit/refund.
Can he expect a full credit from VISA? Will he get some combination of credits from VISA and the Bankruptcy courts? Are there any do's or dont's you would suggest as he goes through this process?
Thanks in advance for any info/wisdom.
08-31-2010, 01:57 AM
My experience with credit card companies is that they usually will credit the account back especially if the purchase was less than 6 months ago. Also, if your son lives in a state that has Seller of Travel protection for state residents, that would be the next avenue to pursue if the credit card company won't refund the money.
As agents, we have been through this with too many times in the past several years with tour companies and airlines. Everyone of my clients have received their full amount refunded to their credit card. Even me when a tour company filed for bankruptcy and I had a hotel stay booked through them. This is why I always recommend client pay by credit card. Refunds on cash or check payments almost never get refunded.
08-31-2010, 03:40 PM
It's important to note that Mexicana has a refund claim process (as opposed to a total cessation of operations and shutdown of all financials) so the CC company will require he goes that route completely first, as you noted. There is also the off-chance they will resume flight ops, tho I find that unlikely.
08-31-2010, 09:35 PM
Mexicana has announced an indefinite cessation of operations. Their online form doesn't say how long one will have to wait for a refund or a possible reaccommodation on another carrier...which I doubt for DEC travel would even happen.
If the trip is necessary, then your son should protect himself on a full fare with another carrier while he waits. AA has announced that they will provide a discount to travelers with MX tickets. He needs to keep in touch with his credit card company on a daily basis and if after a couple of weeks, if no refund has been issued, I suggest pushing the credit card company on the refund. Again, if your son lives in a state with consumer protection that has the Seller of Travel Law, that is another office to contact for assistance.
When we had AQ (Aloha) and TZ (American TransAir) go under in short time of one another, it was quite a nightmare for travelers and agents!