The possibility that you will not be able to go on holiday because your travel firm has collapsed (or worse, that you become stranded hundreds or thousands of miles away from, home) is not a pleasant one. However, don’t let that put you off booking your summer holiday. There are certain steps that you can take to try to ensure that, should things start to go wrong, that the situation is not as stressful as it could otherwise be.
For example, always pay for your holiday with a credit card. Not a debit card. But a credit card. Why? Because you can claim your money back from the Credit Card Company.
The recent collapse of Scottish travel firm, ScotTravel, has caused concerns. Rochelle Turner from Which? Holiday says: “With yet another tour operator collapsing and leaving holiday-makers stranded, it’s really important that people take steps to ensure they are protected should a similar incident occur in the future.
“If you pay for your flight with a credit card or book it as part of a package holiday then you shouldn’t have any problems getting your money back. The same applies for people who book through an ATOL bonded travel agent or operator. You may even be covered by your travel insurance as some policies cover scheduled flights.
“Sadly, if these don’t apply to you there’s little hope of you seeing your money again so bear this in mind when you book your next flight or renew your travel policy.”
How to get your money back if…
You paid for your flight with a credit card
- Then you can claim the money back from your card provider under Section 75 of the Consumer Credit Act. This covers all purchases from £100 – £30,000.
Your flight was part of a package holiday or booked through an ATOL bonded agent
- Then you can claim the money back from the tour operator you booked through. If you have been left stranded by the cancellation of your flight, then it is the tour operator’s responsibility to make alternative arrangements for you.
You have travel insurance
- Check your policy as some cover the loss of scheduled flights.
You paid for your flight with a debit card
- If you paid for your flight using a Visa debit card then contact your current account provider. They will then attempt to recover the money for you. Though it would probably not be covered by the Consumer Credit legislation.