‘British Airways agreed over the phone to refund nearly £1,500 – but then only gave me half’
Every Tuesday, we get an expert to answer your financial problems or consumer disputes. WhatsApp us here or email mo*******@*ky.uk. Today’s question is…
We booked a holiday to Mexico for £2,362 but a few months later were seeing a lot of articles about how dangerous Mexico City had become. When I called, British Airways agreed to let us cancel with a £1,454 refund but then only gave me half. This was last July and I’ve been back and forth with them ever since. They’re saying the complaint is closed. What can I do?
Simon Lawrence
Money blog editor Jimmy Rice answers…
Thanks for writing in, Simon – I got a lot more details about your case from our correspondence.
This helped me have a back and forth with BA – but before I get to where that ended up, I want to go through your rights.
It’s worth saying that you are not alone in having problems with BA. A Facebook group titled “British Airways Complaints Advice” has nearly 41,000 members – read from that what you will.
Your ‘ace card’
I chatted to consumer rights expert Scott Dixon, AKA the Complaints Resolver, about your case – and he was impressed that you’d kept such meticulous notes. This is key when things go wrong.
As a starting point, if BA or another company in a similar scenario is unfairly refusing to engage, Dixon suggests you can submit a data subject access request to retrieve recorded phone calls as evidence of what BA promised.
“This is your ace card,” said Dixon – and it may lead to a resolution in your favour.
Refunds generally depend on the terms and conditions you agree to when purchasing something.
“BA say they sell some tickets at discounted fares which may be partly or completely non-refundable,” said Dixon. “You should choose the fare which best suits your needs and consider taking out travel insurance to cover instances where you might have to cancel your ticket.”
Regardless of the above, you may be entitled to a full refund in certain circumstances, such as:
- A serious illness or bereavement (proof may be required);
- If BA cancels the flight or makes a significant change to it.
Promises made over the phone
When making telephone calls, Dixon says you should always note:
- The name of the person you spoke to;
- Date and time of calls;
- Summary of what was said;
- Request written confirmation of any promises given.
Don’t accept vouchers
This is one of Dixon’s bugbears.
“BA usually offers vouchers instead of cash to close complaints, which you do not have to accept,” he told me. “You are entitled to what you are owed and promised in cash.”
Alternative dispute resolution
If you disagree with an airline’s decision, you have the right to go to an ADR service to dispute it.
The main ADR schemes are Consumer Dispute Resolution Limited (AviationADR) and Centre for Effective Dispute Resolution (CEDR). BA subscribes to CEDR – so that’s where you’d go.
“I have found the ADR schemes to be very good with legitimate claims, and it’s clear that many airlines deliberately flout the law because they know most people won’t pursue it,” said Dixon.
How did you pay for it?
If you paid by credit card, you can submit a claim under S75 of the Consumer Credit Act 1974, which holds the credit card provider jointly liable for a breach of contract.
Small claims court
If all else fails, you could take your case to the small claims court if it is in England, or follow the Simple Procedure in Scotland.
Dixon advises: “Before you file a claim, send screenshots of the draft court papers setting your case out and demanding a refund within seven days. Tell BA that if they fail to do so, you will lodge a claim in the small claims court.
“This may resolve the dispute. If it does not, you can proceed and file the small claim papers online.”
What did British Airways do when we contacted them?
A few hours after we emailed the BA press office, Simon received an email suggesting his case was open again.
Neither we nor Simon then heard much for a week before he received £527.19 and a voucher worth £100.
Simon sent us this email: “This is still £100 less than the £727.19 but it’s better than nothing.
“Still no explanation or proper apology from our standard-bearer airline, but perhaps that’s too much to ask for.
“At least the refund is an acknowledgement that they were wrong and had effectively lied to me when they said the refund was in line with their policy. Without your intervention, I would have just been continually ignored.”
It really shouldn’t take an email from the media to sort these things out, but we are glad BA has now given Simon most of the money he was promised.
In a short statement, the airline said: “We’ve apologised to our customer and have been in touch to make things right.”
This feature is not intended as financial advice – the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:
- WhatsApp here
- Or email mo*******@*ky.uk with the subject line “Money Problem”
FTSE 100 breaks 9,000-point barrier to close at new record high
By James Sillars, business and economics reporter
It’s a record day for the FTSE 100!
The index of leading shares in London has closed above the 9,000 point mark for the first time.
It ended the day 0.2% higher at 9,012.
Miners drove the bulk of the gains, tracking a hike in the price of gold.
It leaves the FTSE 100 up by more than 10% in the year to date.
The total value of the 100 constituent companies stands at £2.19trn.
Much of the market’s success this year has been down to the trade war prompting US investors to look elsewhere – with low valuations in London proving very attractive alternatives.
Threats ahead include the prospect of Donald Trump’s threatened trade war escalation going ahead from 1 August.
While the UK has done a deal to avert the worst, the index is very internationally focused and exposed to any threat to global growth.
Final warning to set your alarm early tomorrow to get cheap flights
Remember to set an early alarm tomorrow – it’s the day we’re expecting to see easyJet drop its cheap 2026 summer flights.
While the exact time they are due to launch is unknown, Money Saving Expert Martin Lewis has said you’ll “probably want to be up at about 5.30am” to bag the best bargains.
This is because flights are priced based on a “dynamic pricing” model, based on demand.
“This means if you book your flight the moment it is launched, prices are likely to be rock bottom,” Lewis says.
He adds it could be “possibly the cheapest you’ll ever get the flights”.
This time last year, 10 million UK flights were released, he said in a video last week – watch below.
Santander axing current account with cashback perk next month
Santander is axing a current account that allows customers to earn as much as 3% cashback on bills.
The bank confirmed to Money that it was withdrawing the 123 Lite Current Account from next month.
The account charges a £2 monthly fee, but allows holders to earn up to £15 per month in cashback on bills such as council tax, prepaid TV packages, energy and water.
It was last on sale to new customers in November 2022.
Those with an affected account will be automatically switched to Santander’s Everyday Current Account, which doesn’t come with any cashback incentives or a monthly fee.
“To simplify our product range, we have decided that now is the right time to withdraw the account,” a spokesperson said.
“As such, from 1 May 2025, we have been contacting customers to let them know that their account will be migrated to our fee-free, Everyday Current Account from August 2025.”
If earning cashback is important to you, Santander does have other options – its Edge and Edge Up current accounts allow you to get money back on selected household bills when you pay by direct debit.
Average earners now spending 75% of money on essentials, index finds
The average earner now spends 75% of their money on essential bills and daily outgoings, with disposable income down by 33%, according to MoneySuperMarket’s latest Household Money Index.
Britons are now spending an average of £1,564 per month on the essentials – a daily cost of £52.
This marks a jump since the first quarter of the year, when the daily spend was £50, adding an extra £39.88 to monthly outgoings.
The Index tracks what people are spending across 31 categories, from mortgages and utilities to subscriptions and groceries.
Disposable income has fallen, with the average person reporting £513.75 left at the end of each month after their bills and outgoings.
But respondents to the index did report some savings, with a drop in spending on energy, mortgages, pet costs, loan repayments and news subscriptions.
Lis Barton – chief customer officer of MONY Group, the parent company of MoneySuperMarket – said the data shows it is “more important than ever” that people look around for the best deal.
“Energy bills have eased off for many this summer, helped along by a lower price cap, milder weather, and more fixed-rate deals on the table – offering a bit of breathing space in a still-volatile market.
“However, there are some bills that are more difficult to cut, like water and childcare costs. These latest figures show that spending has also risen on broadband and mobiles.
“Spending on health insurance has also increased since our last report, highlighting a growing expenditure for many families.”
Biggest July drop in ‘at least 20 years’ for average house prices
The average price tag on a home fell by more than £4,500 this month, the biggest July price drop recorded in at least 20 years, according to Rightmove.
Across Britain, the average asking price fell to £373,709, marking a £4,531 or 1.2% decrease month-on-month, the property website said.
London was the biggest regional driver of the fall, with asking prices decreasing by 1.5% to an average of £684,689.
This is still a significantly more expensive price tag than the rest of the country.
The North East is the cheapest place to buy, but has increased in price by 1.2% on average since last month.
Here’s a regional breakdown of the prices:
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While there is often a seasonal dip in prices in July, this is the largest monthly price drop at this time of year recorded by Rightmove in more than 20 years of data, the website said.
April’s increase in stamp duty has had a particular impact in London, where property prices are higher, it added.
Colleen Babcock, a property expert at Rightmove, said: “We’re seeing an interesting dynamic between pricing and activity levels right now.
“The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property.
“The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area.
“It appears that more new sellers are conscious of this and are responding to this high-supply market with stand-out pricing to entice buyers and get their home sold.”
Read more about what’s happening in the mortgage market in our Mortgage Guide…
Your chance to get free Greek food this month
Forget Charlie and the Chocolate Factory, Greek food is the new golden ticket in town.
This July, The Real Greek is offering one lucky table a completely complimentary meal, as long as you are handed the golden menu.
This deal was flagged to the Money team by one lucky reader, who told us they were unknowingly handed the prize.
“It was really noisy when we walked in,” she told Money, saying they were handed a golden menu but couldn’t hear the staff member explaining properly that the meal was on the house.
So, they ordered the £24 Filoxenia menu without realising – it includes a series of small plates, halloumi and salad – as well as some extra sides and drinks.
It was only when the bill came that they realised it was completely free, and only needed to pay for the extra sides and drinks, which she described as a lovely surprise.
How it works…
Every day, one lucky guest will be randomly handed the Golden Menu, which unlocks a free Filoxenia Menu for the whole table.
It’s quite literally as simple as that – no sign-ups, no codes, and no apparent catch.
And hopefully you’ll be more eagle-eyed when it comes to spotting the colour of the menu.
State pension age faces early review
The state pension age will be reviewed by the government, it has been announced.
The review will consider if the current age, 66, is still appropriate, based on factors such as life expectancy.
The government is required to conduct a review into the state pension age every six years, but it appears to be starting this one early as the last one concluded in 2023.
Experts have warned that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners.
The Department for Work and Pensions (DWP) said 45% of working-age adults were putting nothing into their pensions, with concerns that the cost of living crisis is preventing people from investing in their retirement.
Work and pensions secretary Liz Kendall said she was “under no illusions” about how difficult it would be to map out plans for pensions for the coming decades, as the cost of living crisis continues to bite.
Ryanair considering paying staff bigger bonuses for catching customers with oversized hand luggage
Ryanair is considering paying bigger bonuses to staff who catch passengers travelling with oversized cabin bags.
The budget airline gives employees a “bag gate bonus” for enforcing its baggage allowance policy, with a former employee telling The Sunday Times they were paid about €1.50 (£1.30) per bag.
The ex-staff member told the newspaper the bonus was capped at about €80 (£69.23) per month per person.
But Ryanair’s boss Michael O’Leary has said today that it could increase the payout.
He said: “We are happy to incentivise our (staff) with a share of those excess baggage fees, which we think will decline over the coming year or two.
“It is about 1.50 euro per bag – and we’re thinking of increasing it, so we eliminate it.”
A spokesperson for the airline told Money these baggage fees are paid by “less than 0.1% of passengers who don’t comply with our agreed bags rules”.
“Our message to those 0.1% of passengers is simple: please comply with our generous bag rules or you will be charged at check-in or at the gate. For the 99.9% of our passengers who comply with our rules, we say thank you and keep flying, as you have nothing to worry about,” they added.
Customers are allowed to take a 40x20x25cm bag on board for free with Ryanair, and a 10kg, 55x40x20cm bag for fees starting at around £9.
Earlier this month, the airline confirmed it was increasing the size of its free bag by 20% to 40x30x20cm after the EU set out proposed new laws for more free baggage.
At the time, it said the change would be implemented over the coming weeks while it adjusts the size of its airport bag sizers.
You can read more about that change below…
Boxing fans fume and call for refunds after Usyk v Dubois fight plagued with ‘buffering issues’
By Jess Sharp, Money live reporter
Boxing fans are demanding refunds after their DAZN stream of Saturday’s heavyweight world title fight was ruined by “constant buffering” issues.
Oleksandr Usyk stopped Daniel Dubois in the fifth round of the fight, delivering a vicious punch that knocked his rival’s gum shield out of his mouth.
The epic moment secured the Ukrainian the undisputed world heavyweight champion title, but some fans missed it due to problems with the stream.
‘They’re denying anything was wrong’
“£25 to watch the boxing and all I got was constant buffering! Even missed the knockout punch. How do I get a refund for a service not received?” one customer wrote on X.
“This will definitely be the first and last fight I watch on DAZN. The buffering and quality makes it unwatchable. What a shite service,” said another.
Some even called for fans to complain to the media regulator, Ofcom, about the poor service.
“They’re [DAZN] refusing refunds and denying anything was wrong at their end (despite hundreds of complaints on Twitter with the exact same issues). We have complained to Ofcom. Only takes a few minutes,” one customer said.
The Money team spoke to several others who had suffered similar issues and had been refused refunds.
John, 38, from Essex told us: “The stream for the pay-per-view event was really poor, constantly buffering, sound cutting out and the picture being cut off completely. It was literally unwatchable.
“I raised the issue with DAZN yesterday and their response was an abrupt ‘you’re not entitled to a refund’. The best they could offer was to cancel my free 7-day trial, which I could do with a click of a button.
“This was the first time I have ever used DAZN and will not be doing it again. I think it’s disgusting to be honest, as the stream was virtually unwatchable. I am sympathetic when things go wrong but the right thing to do is refund me if I wasn’t provided the service I was promised.”
Some customers said DAZN told them there was no issue with its stream, implying the problem was with the customer’s own internet or TV services.
On X, the company told people to follow five steps to try to get it fixed.
“Please follow the below-mentioned steps without skipping.
1. Force restart the device. 2. Uninstall the app. 3. Update and Restart the device. 4. Reinstall the app. 5. Internet speed, try to stream on another device. If the issue persists, please DM us.”
‘Unable to process refunds’
Some fans did follow up with a direct message, but were told that DAZN’s policy means it is “unable to process refunds for streaming issues even when evidence is provided”.
“I truly appreciate you sharing your experience and feedback. We will improve the service in the future,” a company representative replied.
We have contacted DAZN for comment.
The streaming platform, which is the broadcast partner of boxing promoter Eddie Hearn’s Matchroom, allows people to pay for a subscription to its services or a one-off fee for a particular event.
It costs £14.99 a month for a 12-month deal, £24.99 a month to cancel anytime or £119.99 for an annual pass, with the Usyk v Dubois fight setting people back £24.99.
This isn’t the first time customers have complained about DAZN’s poor service. It has received bad publicity for similar issues in the past, particularly during the highly anticipated Fury v Usyk fight last year.
What should you do next?
Consumer champion Scott Dixon, AKA the Complaints Resolver, said customers should raise a chargeback to get their money back if DAZN refuses to issue refunds.
“With so many people affected, this was clearly a widespread issue and DAZN cannot rely on a standard fob off citing there were no issues and blaming customers’ internet when it’s been widely reported that tens of thousands of viewers had issues,” he told Money.
He said the issue wasn’t a minor glitch and instead was a “failure to deliver the service viewers have paid for”.
“Evidence is crucial on these types of complaints. Provide links to media articles that evidence it was a widespread issue, screenshots of social media posts and time-stamped screen recordings if you have them,” he said.
“Push hard and cite it’s a clear ‘breach of contract’ under Section 49 of the Consumer Rights Act 2015, as the provider failed to perform the service with reasonable care and skill.”
Have you been affected by this issue? Tell us about your experiences by emailing mo***@*ky.uk.