Money-saving expert Martin Lewis has issued a stark warning to holidaymakers about cancellation refunds.

The coronavirus pandemic has affected millions of people across the country who have been left out of pocket because of holiday cancellations.

Some travel companies are offering credit note refunds to customers, where they can choose to rebook their holiday or exchange it for a cash refund, report The Mirror.

However, this can often only be done once a credit note refund has been received.

Many families, who have been lucky enough to get through to the companies they have booked with, have accepted a voucher or credit note.

Some of the firms have claimed the credit notes are ATOL protected and if the company goes bust, customers will still be able to get their money back.

However, in Martin's  Money Saving Expert newsletter he warned accepting a voucher rather than cash would make it “unlikely you'll be able to claim on a debit/credit card if the firm goes bust”.

Martin said: "I've been seeking confirmation on this for a while, and now I've got an answer, but it isn't great.


Martin Lewis






So Martin advises to check the T&Cs of your voucher or credit note to see whether you can claim a cash refund at a later date.