British Airways, PLC

I fly a lot and this is the worst experience on an airline I have ever had. Iberia (owned apparently by British airways) has awful customer service.
We stopped in Lisbon on our way from the Azores to Madrid. We had to get our luggage and re check in and go through security because we switched airlines (standard)…HOWEVER there was ONE ticket counter open with more than 25 people in line. When we finally did get up to the counter (close to an hour later) we were told that our seats were not confirmed (despite what our confirmation said) and they had over booked the flight. They gave us standby tickets and told us to wait at the gate to see if we could get on.
Half of our party was able to get on the flight the other half was not. The next flight available was in 5 hours. After waiting at that gate for 2 hours they gave us a voucher to get 125 Euro back, oh but you can’t redeem it here because this is not a hub airport.
Ok now we will let you go to the Lounge to wait for your next flight, but wait… your luggage that we made you check, is at baggage claim… now…
So you have to go pick it up, but one more catch… we won’t take it back for the next flight until 2 hours before the flight. So you have 2 options, let your luggage go around the carousel for 3 hours while you wait in the lounge, or leave and get your bags so they don’t get stolen but we won’t let you re check in for 3 hours.
TOTALLY unacceptable. You don’t have a system to forward our luggage to our next flight since YOU overbooked? No instead make us leave the airport and do the entire process again while waiting for 3 hours with our bags outside.
Will never fly with them again.