15 September 2008
Consumers should consider using their credit cards when booking holidays as they will be eligible for refunds if travel companies go bust, uSwitch.com has claimed. According to the online price comparison and switching service, the collapse of the airline XL demonstrates the importance of having some form of protection when paying for trips. Customers who bought package holiday deals including XL flights will be able to claim a refund on their vacation through the Air Travel Organisers' Licensing scheme. However, those who booked their flight separately through the airline will not be entitled to this type of protection and could lose their money, unless they paid by credit card. Simeon Linstead, Head of Personal Finance at uSwitch.com, explained that under the Consumer Credit Act, card companies are jointly liable for purchases and are therefore required to provide customers with a refund if the supplier goes out of business. "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," he remarked. Protection under the Consumer Credit Act applies to credit card purchases of between £100 and £30,000.
© 2008 Adfero Ltd
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