Credit Card Payments Provides Support For XL Travellers
With the recent collapse of the XL travel company, several thousands of holiday makers have been left stranded and helpless.
As many holidaymakers chose to organise their holidays, with independent travel operators, and without a travel agent; this choice, though cheaper, put them in a dangerous position.
The finances that they used to pay for the holidays abroad will be lost as they did not take out protection to safeguard them, if their holiday operator loses its own finances.
Simeon Linstead, head of personal finance, explains the position that many British holiday goers have seen themselves in.
He said: "While those consumers who opted to purchase a package deal will benefit from Air Travel Organisers' Licensing protection (ATOL), those who chose to book their own flights and bypass agents - at least 10,000 in the case of XL - will not benefit from this type of protection and could have lost their hard-earned cash.
" For those holidaymakers however, that used a credit card to pay for their travel tickets, protection is available and they will be able to get a refund, quite simply.
Credit card purchases are protected by Section 75 of the Consumer Credit Act, which states that the credit card provider is partially responsible for the purchase and the credit card user has legal right to a refund.
Mr Linstead added people using a Visa debit card also have similar protection.
In relation to this fact he said: "Some consumers may not be aware that should you be the owner of a Visa debit card you have similar rights to those with a credit card, in what is known as a chargeback scheme.
" He added: "Unlike the credit card protection there is no minimum or maximum limit on the purchase, however you must apply for compensation within 120 days of the date the goods were due to arrive.
"Unfortunately, those that paid by alternative debit cards may find they do not have any protection at all.
" The Association of British Travel Agents (ABTA) is now calling on the Government to provide protection for all the travelers involved.
Mark Tanzer, ABTA chief executive, said: "The failure of XL demonstrates the virtue of financial protection, and the hazards of travelling without it.
We shall renew our call on government to address this issue as a matter of the utmost urgency.
"Until the situation is reformed and made consistent, we recommend that travelers buy package holidays from ABTA Members, as these provide full repatriation and refund protection.
" The number of British holiday makers being covered by ATOL has fallen in recent years due to the internet making it easier to book flights and accommodation.
Estimations show that the number of those protected by ATOL has fallen from 98 per cent in 1998 to 61 per cent this year.
Mr Linstead concluded: "With this being the third collapse of an airline or holiday firm we have seen this month, consumers should think carefully about the way in which they purchase their holidays or any other big purchases if they want some form of protection.
"
As many holidaymakers chose to organise their holidays, with independent travel operators, and without a travel agent; this choice, though cheaper, put them in a dangerous position.
The finances that they used to pay for the holidays abroad will be lost as they did not take out protection to safeguard them, if their holiday operator loses its own finances.
Simeon Linstead, head of personal finance, explains the position that many British holiday goers have seen themselves in.
He said: "While those consumers who opted to purchase a package deal will benefit from Air Travel Organisers' Licensing protection (ATOL), those who chose to book their own flights and bypass agents - at least 10,000 in the case of XL - will not benefit from this type of protection and could have lost their hard-earned cash.
" For those holidaymakers however, that used a credit card to pay for their travel tickets, protection is available and they will be able to get a refund, quite simply.
Credit card purchases are protected by Section 75 of the Consumer Credit Act, which states that the credit card provider is partially responsible for the purchase and the credit card user has legal right to a refund.
Mr Linstead added people using a Visa debit card also have similar protection.
In relation to this fact he said: "Some consumers may not be aware that should you be the owner of a Visa debit card you have similar rights to those with a credit card, in what is known as a chargeback scheme.
" He added: "Unlike the credit card protection there is no minimum or maximum limit on the purchase, however you must apply for compensation within 120 days of the date the goods were due to arrive.
"Unfortunately, those that paid by alternative debit cards may find they do not have any protection at all.
" The Association of British Travel Agents (ABTA) is now calling on the Government to provide protection for all the travelers involved.
Mark Tanzer, ABTA chief executive, said: "The failure of XL demonstrates the virtue of financial protection, and the hazards of travelling without it.
We shall renew our call on government to address this issue as a matter of the utmost urgency.
"Until the situation is reformed and made consistent, we recommend that travelers buy package holidays from ABTA Members, as these provide full repatriation and refund protection.
" The number of British holiday makers being covered by ATOL has fallen in recent years due to the internet making it easier to book flights and accommodation.
Estimations show that the number of those protected by ATOL has fallen from 98 per cent in 1998 to 61 per cent this year.
Mr Linstead concluded: "With this being the third collapse of an airline or holiday firm we have seen this month, consumers should think carefully about the way in which they purchase their holidays or any other big purchases if they want some form of protection.
"
