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Caravan parks should issue partial refunds, says Martin Lewis

Caravan owners could be eligible for partial refunds if they've been unable to use their vehicle during lockdown

By Chris Littley

Martin Lewis of Money Saving Expert has updated his advice for caravan owners who have leisure vehicles at caravan parks during lockdown.

Previously, the official line had been that no refunds would be given, as fees ensured caravans would be kept safe in well-maintained parks and this view was upheld by the British Holiday and Home Parks Association (BHHPA).

As sites have now been closed since March and look unlikely to reopen again before July, it is a substantial amount of time that owners have not been able to benefit from using their motorhomes.

In light of this, Mr Lewis has spoken to a lawyer who agrees that partial refunds should now be pursued by caravan enthusiasts affected by the situation.

Adam Swirsky, the lawyer in question, has gone over a model contract and licence agreement supplied by the BHHPA and concluded a case could be made for breaches of service that parks have not been able to provide.

Mr Swirsky said: “I do now think that there is a potential claim for breach of contracting giving rise to an entitlement of damages.

“Those parks that are not providing refunds are opening themselves up to the risk of litigation; they may also be damaging their relationships with their caravan owners and may be subject to public criticism.

“In these circumstances, offering a refund would not only seem to be sensible but, in the long run, might save the parks the times and cost of dealing with numerous small claims”

For caravan owners wondering how to proceed, Mr Lewis has now made a template letter available to be modified and sent to individual sites depending on the exact words of individual contracts.

It is still recommended that owners systematically work through five distinct stages in trying to resolve the matter.

This means they should start by working out exactly which services they have not been able to access and then talk to the management at the caravan park.

If a mutually agreed resolution cannot be found, then a formal letter should be sent. This can be followed up with a Section 75 claim or a Chargeback for a partial refund.

Should this not yield results, caravan owners can turn to the Financial Ombudsman Service and then eventually take the park to court, but the majority of cases will not come to that.

According to the BHHPA, caravan park fees range from £1,500 to £5,000 per year, meaning even a partial refund could amount to a significant amount of money.