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Compensation from United Airlines for denial of boarding (involuntary)

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My daughter, 18, was booked on a flight the Tuesday before Thanksgiving from Columbus, OH to Newark, NJ. She arrived at the airport nearly four hours before departure but was bumped anyway due to overbooking. United had no more flights that night to the NYC area, the next available seat was on a 6:30 a.m. flight. Panicked about a forecasted snowstorm the next morning, she decided to buy a ticket on another airline to get home (flew to Baltimore, then Amtraked to NYC and picked up at Penn Station, an hour from our home). She used the return portion of the United ticket to get back to school in Ohio.

I requested a refund from United on their website and asked for the unused portion of the ticket (roundtrip ticket was $500.00) plus the compensation due for her involuntary denial of boarding, which I understood could be as much as 400% given the circumstances,

I got an email today from United saying my refund request had been processed. When I looked it up on the website, I saw that they had processed a refund of $204.00, a little bit less than half the face value of the ticket.

Am I incorrect in thinking that I'm due additional money as compensation, per the federal rules? The earliest the airline could have gotten her to her destination was 12 hours after the arrival time on her original booking.

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