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JJust now and again things can go wrong - like the XL.com problems in September 2008 when thousands of people lost their hard-earned money.
Here’s a few tips for those affected by your holiday company going bust and some will help guard your cash in the future.
We have lost everything .. what can we do?
Anyone who has lost money and is not bailed out by the ATOL scheme, or who incurs extra expenditure as a result of a holiday company going bust, has become a creditor of the firm.
You should contact the administrators, of the holiday company , but you are unlikely to get much money back, if any.
Most companies leave a recorded message with details of how to go about this and tv news programmes will have a number of the stricken company’s helpline . Even try a local travel agent and simply ask them for the number.
We paid by credit card .. can we claim our money back?
People try to avoid credit card booking fees and pay directly from their bank account but the credit card could be your safest option.
Buying a ticket with a credit card does offer limited protection.
Under the Consumer Credit Act you will get your money back if you have spent over £100 up to £30,000
The drawback is that £100 or more must be the value of a single flight – if three flights add up to £100 you are not covered.
Some debit cards may offer similar cover – check with your debit card provider.
Tips for credit card purchases made in the UK.
Thanks to the consumer protection of Section 75, money that seemed lost on a credit card purchase can be claimed back.
If you pay by credit card you can claim your money back from the card company if the seller fails to honour the contract, or the item is faulty or if the seller wrongly describes it or if the supplier goes out of business with your money before the item is delivered.
- If you are buying an item costing over £100 and you are asked for a deposit, consider paying the deposit by credit card.
- You have protection whether you buy in the UK from a shop, by mail-order, by telephone or internet - the protection is the same.
- You will not be covered by Section 75 if you use a debit or charge card.
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