DRSF defends itself: repayments after FTI insolvency continue to be stagnant!

DRSF defends itself: repayments after FTI insolvency continue to be stagnant!

The German Travel Insurance Fund (DRSF) has responded to allegations from the Dutch travel association ANVR regarding a slow refund of customer money following the insolvency of the tour operator FTI. The DRSF rejects the criticism and emphasizes that all national requirements were adhered to. This dispute over refunds has now been going on for almost a year after FTI's bankruptcy was announced in early June 2024.

Since then, affected customers have been waiting for refunds for their canceled package holidays. The DRSF started the refund processes at the beginning of August 2024 and plans to carry out one of the largest refund processes in the history of Germany. The volume of reimbursements is expected to be in the mid three-digit million range.

Reimbursement process and challenges

As part of the refund process, customers will be contacted via email provided they have at least two authentication factors, such as a valid email address and mobile phone number. However, FTI or BigXtra customers who have not provided complete contact details will be notified by post. Travelers must have their documents ready, including the DRSF security certificate.

An update from August 14, 2024 shows that the online refund form is perceived as complicated by many applicants. Applicants have 90 minutes to complete the application, although there is no option to temporarily save the application or change it afterwards. For trips involving several people, an additional form must be printed out.

Criticism and problems

Consumer advocates have criticized the lack of an option to submit a paper form as it makes refunds more difficult for non-internet-savvy vacationers. In total, around 250,000 canceled package tours are affected, which benefits around 60,000 travelers. The DRSF plans to actively contact all those entitled to benefits, provided their contact details are available.

To receive a refund, applicants must submit certain documents, including booking confirmations, payment receipts and the travel insurance certificate. The DRSF has made it clear that it is only responsible for package tours and not for individually booked services such as hotel rooms, flights or rental cars.

The DRSF was founded after the bankruptcy of Thomas Cook in September 2019 in order to reimburse advance payments in the event of bankruptcy and to bring back stranded holidaymakers. The current dispute with ANVR highlights the challenges that still exist even after almost a year of insolvency. The DRSF complains that the ANVR has not yet provided the necessary evidence, which further complicates the process.

For further information on the allegations and the current situation, you can visit the reports fvw.de and merkur.de read up.