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Rail firms STILL failing to tell customers about new refund powers as MPs and regulators threaten investigation

Rail watchdogs and MPs have threatened to investigate train firms which are continuing to flout consumer laws by failing to tell passengers about their new powers to compensation.

On October 1 the Consumer Rights Act was extended to cover the rail industry, allowing passengers to claim back money for issues other than delays, like overcrowding, dirty loos and expenses incurred through delays.

However a Daily Telegraph investigation conducted a day after the change found that three quarters of train firms had not updated their websites with details of how passengers could claim refunds.

At the time Paul Maynard, the rail minister, urged rail companies to make sure their websites were updated to reflect the latest change in the law. Today a study by consumer body Which? has revealed that five months later there has been virtually no improvement.

Which? found 17 out of 24 firms are still failing to clearly tell customers about their new compensation rights.  

Its researchers found many train companies included references to consumers’ legal rights in relation to compensation, yet had failed to make it clear that this applied to new rights covered by the Consumer Rights Act.

Under the Act they are now entitled to claim for consequential losses that result from a delayed or cancelled train, such as reasonable costs for missed flights, taxi fares, or child-minding fees. According to Which? by failing to advertise these rights on their homepages train companies are potentially "breaking the law" as it could mislead passengers into thinking they cannot make a claim.

Louise Ellman MP, chair of the Transport Committee, said it was "shameful that rail firms had not improved after so long and condemned rail regulators for not dealing with the problem sooner.

She said: "It is shameful to see that passengers are still being short changed. We shouldn’t have reached this point. The rail regulator should be dealing with this. Train operating companies should provide passengers with all the information on their website on what they are entitled to and how they should go about claiming it.”

“This is one of many issues with rail compensation in the UK and the Transport Committee will be holding a session on this in the near future.”

A spokesman at the Office for Road and Rail, which regulates train operators, said: “We are aware of Which?’s concerns and have been working with the industry to improve the way in which train companies provide information to passengers about their rights and will continue to do so.

Where we find evidence that train companies are not complying with their legal obligations we will investigate and take appropriate steps to ensure compliance.”

A spokesman for the Rail Delivery Group, which represents train operators, said: “Which? is wrong, train companies are not breaking any laws. Train companies’ compensation arrangements already go beyond what is required under consumer law, and customers are getting an even better deal with new improved rights.

“Customers are clearly advised of their rights to money back. All train companies comply with the Consumer Rights Act and display the National Rail Conditions of Travel – which are approved by the government - on their websites.”

The new rules are an extension of the Consumer Rights Act which have given consumers enhanced rights to claim compensation for train and coach journeys, which were previously not covered by it. 

The rail industry was previously excluded from the rules but following a super-complaint by Which? the Government decided the rail industry should have to comply with the act from 1 October 2016.

A Spokesman for the Department of Transport said: “When things do go wrong it is vital that they can claim compensation fairly, quickly and easily.  That is why in October last year we brought forward a provision in the Consumer Rights Act that allows rail passengers to challenge compensation amounts awarded for delays and cancellations where the train operator is at fault.

“We expect operators to make passengers aware of their rights to claim compensation and will continue to work with train operators to improve their schemes and provide clearer information on their websites‎."