A few years ago I booked a trip to the UK to visit some friends. The morning I was supposed to leave, I get an email from one of my friends saying that I should check if my flight is still on, because there is "something going on with a volcano in Iceland". Turns out it's the start of that major eruption and all air traffic in Northern Europe is grounded with no foreseeable reopening.
I first called the airline, Virgin Atlantic. They were very friendly, apologetic, and as helpful as possible. They said they could reschedule me, but given all the unknowns they weren't making any new bookings for at least 2 weeks. Now this was a two week vacation I was taking, with lots of other things scheduled, so I couldn't really just up and shift the whole thing two weeks on a whim. They would have gladly given a refund, but since I booked through Expedia, I had to talk to them. That's when things started going downhill.
First of all, even on what I'm sure was a crazy customer service day, the people at Virgin answered the phone in minutes and were quite friendly. The Expedia call took almost an hour to be answered. Every agent I spoke too was borderline rude and confrontational, and had the worst broken English of any oversees call center I've dealt with. From the start they only wanted to argue, that because it was the day of the flight, I could neither cancel or reschedule. Finally, after about 90 minutes of arguing and being transferred, I got to a high enough manager who actually seemed to listen to what I said and not just be reading a script, and got my refund authorized. And I thought it was over.
Months go by and the credit never appears back to my card. I call Expedia a couple times, each time they say it is being processed by the CC company, but it can take up to 90 days. I check with the CC, they have no record of the credit. Finally after 90 days, I get a hold of Expedia and they say it is fine if I just have the CC company cancel the transaction on their end (as a dispute), as there must have been a "glitch" somewhere. And that flipped the trouble switch.
Apparently there is an automated system in Expedia, if you dispute their charge with you CC company, they automatically flip it to a collections agency. A few months after I did, I got a very threatening letter and phone call saying I owed the charge plus penalties and interest. If I did not pay, they would flag my credit rating and possibly take further legal action. I contacted Expedia again to ask WTF is going on, and their response was that they are not allowed to communicate with the collections agency once the matter has been given to them. They were confident that if i just explained why I didn't owe the money, the collections guys would drop it. But they couldn't provide me with any documentation to give them.
After another month of letters and phone calls with the collections agents, and quite a bit of stress on my end, I stopped hearing from them so I guess it was resolved.
Keep in mind, all told this is about 8 months down the road from when I was originally supposed to travel. In fact I rebooked the entire trip for about a month after the original, and had already gone and come back. But definitely not with Expedia.