“How long do I have to endure this bloody situation?”
A group dispute resolution process is underway for consumers who have not been able to receive refunds for their damages following the non-payment incident involving Timon and WeMakePrice (T-MakePrice).
As payment processing (PG) companies and the travel industry continue their battle over responsibility for refunds, consumers are anxious about when they will receive their refunds. Even if this dispute is resolved, the fact that it could take up to 90 days is adding to consumers’ frustration.
According to industry sources, the Korea Consumer Agency accepted applications for group dispute mediation in the travel, lodging, and airline ticket sectors until 11:59 PM on the 9th. The total number of applicants is 9,028, and this may be adjusted depending on additional refund situations.
Group dispute mediation is a system in which 50 or more consumers jointly apply for damage relief when they have suffered damage from the same product or similar types of damage. If mediation is successful, it has the effect of a court settlement, allowing disputes to be resolved more efficiently than civil litigation.
On the 29th of last month, the government held the 2nd meeting of the ‘TF of Related Ministries Regarding Unsettled Sales Payments of WeMakePrice and Tmon’ and instructed the Korea Consumer Agency to form a Consumer Damage Countermeasures Team and a Working-Level Response Team, and has been accepting applications for collective dispute mediation since the 1st.
The Korea Consumer Agency, which has completed the application, plans to begin full-scale mediation through the collective dispute mediation committee within this week. In this mediation, the online platform operator (T-Map) that provided the mediation service between the consumer and the seller, along with the seller who is a party to the contract, will participate as a party.
As some PG companies and card companies previously suspended refunds for travel products, consumers began to wait indefinitely. This is because it is necessary to examine whether the PG company or the travel agency is responsible for refunding travel products. The PG company’s position is that once a travel contract is confirmed, the travel agency is responsible for refunding.
In response, the Korea Association of Travel Agents stated in a statement, “It is true that travel agencies sold travel products, but they have not received settlement from Timeprice, so they have no money to refund,” and pointed out that “some PG companies and card companies are trying to shift responsibility for refunds to travel agencies.”
In this situation, the damage is entirely borne by the consumers. Travel product consumers who have not received any relief from T-Map, PG companies, card companies, travel agencies, etc. are flocking to file for group dispute mediation.
A travel product consumer who participated in the group dispute mediation application said, “I feel like I have to do everything I can (to get a refund),” and “I thought that the more cases I filed, the more interest there would be and the more vigilant people would be.”
Another consumer said, “I was hoping the payment company would refund me this week, but it seems like it will be difficult, so I applied for class action dispute mediation on the deadline.”
Full-scale mediation by the Korea Consumer Agency’s Dispute Mediation Committee has begun, but it is uncertain whether the situation can be concluded quickly.
According to regulations, collective dispute mediation must announce the start of the procedure and reach a mediation conclusion within 30 days from the end of the announcement. However, it can be extended twice by 30 days each, so it can take up to 90 days.
Consumers who have been waiting for a long time for refunds are unable to hide their frustration. One consumer who purchased accommodation products from Timon complained, “This summer vacation was ruined because of Timon,” and “Accommodation and travel are the most (damaged) and urgent, and this situation is frustrating.”
(Seoul = News 1)