Small businesses appeal for consumers to be open to vouchers
Small business representatives are appealing to people to accept vouchers instead of cash refunds where possible to help keep businesses afloat.
Paying out huge volumes of cash refunds for events cancelled due to the coronavirus outbreak could undermine the stability of businesses all over the country, the Irish SME (ISME) Association warns.
But consumer rights advocates say that customers should not be left out of pocket when it comes to bearing the burden for the pandemic outbreak.
Neil McDonnell, ISME CEO, said many small businesses simply cannot afford to refund huge swathes of cash to customers. He said restaurants and hotels have been badly hit by closures and cancellations. He told Pat Kenny on Newstalk: "Even the largest businesses can be challenged by this."
"It could undermine the longevity of the business. We would completely sympathise with someone who has gotten a voucher in those circumstances but, at the moment, restaurants are not taking cash in the door, they have laid off staff, and if they are forced to give cash for those vouchers, that will undermine the viability of that restaurant. I appreciate people want their money back but I would ask for patience and understanding."
The Consumer Association of Ireland (CAI) warns that the entitlement for refunds "cannot be in any way diminished or made open to negotiation". It is also calling for alternatives, such as vouchers, to be guaranteed their value through bonding or Government underwriting.
Dermott Jewell of CAI said many customers face a situation where they borrowed money to buy big-ticket items, like airline tickets, and they will not be afforded the luxury of time when it comes to repaying these loans: "There is an opportunity to offer a choice, perhaps, but there is a situation being created where that choice is being taken away and we have to be careful we don't take that choice away entirely."
In recent weeks, the row over airline refunds has blown up, with customers furious as they face the prospect of being issued vouchers instead of cash refunds to cover cancelled flights. The mood worsened further last week when it emerged that the government has petitioned the European Commission to temporarily suspend the law which guarantees the right of refund for cancelled flights.
The Irish Examiner has seen a legal letter issued to Ryanair noting that despite these efforts, customers "remain entitled to a reimbursement to the full sum" paid for flights. The failure to do so could trigger a legal challenge in the small claims court, the firm notes in the letter, sent on behalf of a customer left out of pocket.
The customer accepted a refund when offered, only to later be offered a voucher, it claims.
