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What to know about the DOT's automatic refund rule ahead of the holiday travel season

Travel
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TAMPA, Fla. — With the Thanksgiving travel rush in full swing, the US Department of Transportation created universal standards for when you're owed a refund from an airline.

Cedric Smith is heading to Cancun for the holiday.

"Excited about fun, sun,” said Smith.

While hoping for seamless travel this go round, he knows the headache of working through airline refunds when there's a problem.

"Oh my god, having to either do the chat bot where you're texting a chat to someone or trying to get a live representative can get very, very frustrating,” said Smith.

Now, that process should get easier.

In October, the DOT’s automatic refund rule went into full effect, laying out exactly when you're entitled to a refund.

A few examples: if the airline cancels a flight, regardless of the reason, and doesn't rebook you; or it's canceled and the airline offers to rebook or alternative compensation, but you don't accept it.

"This also can count for changes to your itinerary, in what airport you fly out of, if you now have a connection and you didn't have a connection before, any changes to your itinerary as well as if you don't get a service that you paid for by the airline,” said Katy Nastro, the spokesperson for the Going travel app.

It applies if your flight is "significantly changed" and you don't accept it or other offers.

"Significant change" can mean a domestic flight that leaves or arrives three or more hours earlier or later than scheduled.

"This is also covering bag fee refunds, so if you don't see your bag back in hand after 12 hours from the time you land, you are entitled to an automatic refund for your bags,” said Nastro.

The amount of time for delayed bags differs for international flights.

Nastro points out that in the past, requesting a refund could take weeks, if not months, but now, it should be a quick turnaround.

“These automatic refunds should be not only timely, as in seven business days back to your method of payment, namely credit card, little bit longer for other method of payments, as well as hassle free,” said Nastro.

Keep in mind that the DOT says you're not entitled to a refund if you accept a rebooked flight with the airline or continue with a significantly changed itinerary.

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