What you've quoted in incorrect. Tui aren't refusing to refund.
They are automatically giving refund credit. Plus a 20% incentive to rebook. If not used within a year then it will auto refund as cash.
If refund is not suitable for you, you apply for a cash refund. But they are saying you can only apply for cash refund once you have recieved your credit refund.
More sensationalist tosh