Discount airline Direct Air just announced that it has suspended all flights scheduled for the next two months (apparently because they did not pay their fuel bill), and that ticket holders should contact their credit card company for refunds.
We have a number of customers calling the bank, attempting to get their refund. However, in all of these instances the customer used their VISA branded debit card (not a credit card)to make the ticket purchase.
1) Since these transactions were authorized (in some instances as far back as September or October 2011), it is my understanding that these customers do NOT have the right to file a Regulation E claim, correct? (I do not believe that Reg E covers authorized transactions where the customer does not receive the goods purchased).
2) If these purchases do not qualify for a Reg E claim, is the bank REQUIRED to help them get their money back, and if so, how do we go about it? (For example, we wouldn't want to have them complete Reg E Claim paperwork when it isn't really a Reg E claim, and we wouldn't want to be obligated to provide provisional credit).
3) If the answer to question #2 is "no, the bank is not required to assist these customers", is there something the bank could do to try and help these people out, if we so choose?
At this juncture, we believe that this circumstance does not qualify as a Reg E Claim, but are unsure if the bank has some other obligation to assist these customers under the VISA check card rules (or some other rules).
Can anyone help? Thank you.