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By Donna Jennings Staff Writer
Tuesday, 27 May 2008
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Credit Cards Can Save You When Travel Companies Go Bust
Did you know?
- In 2005, carrier EU Jet went out of business leaving 39,000 people stranded at the airport.
- In 2006, the tour operator TravelScope went into liquidation leaving thousands of people abandoned in different countries.
- In 2008, Oasis Airlines ground to a halt leaving hundreds of people out of pocket.
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MANY of us prefer to plan our holidays independently rather than take a package deal but paying by debit card, cheque or cash could prove a costly mistake if your airline company or hotel goes out of business.
Package holidays are protected by ATOL (Air Travel Organisers' Licensing) which is a consumer protection scheme designed especially to compensate holiday-makers if things go wrong.
But where do you stand if you avoid the package holiday cattle-run and organise your own holiday this year?
Consumers wishing to book a DIY holiday are not protected under the ATOL scheme but there is one alternative method of protection for those who prefer to tailor-make their holiday: the credit card.
Credit cards offer holiday protection
Paying for your hotel and airline tickets by credit card will ensure you receive full protection and peace of mind.
This is vital for vulnerable DIY travelers who have to make more than one purchase to secure their week or two in the sun.
Transactions are protected for any purchase over £100 and less than £30,000.
A credit card payment will also provide security against any breach of contract by a travel company or any misleading information provided.
Although paying for a holiday by alternative methods will eliminate annoying credit card transaction fees, this extra expense could be a drop in the ocean compared to the thousands of pounds that could be lost if something goes wrong.
Many people are under the impression that their travel insurance will bail them out of these travel nightmares.
However, in many cases (with the exception of easyJet), travel insurance will not protect you if an airline company goes bust.
Low cost credit cards
There are many low cost credit cards available to take the sting out of paying this way.
This leaves you free to start worrying about how much sun-block to buy at Boots, knowing that you are fully protected if things should go wrong.
Don’t take a risk with your holiday this year.
It is easy to get carried away with the excitement of planning your trip but failing to use your plastic friend, could make this holiday one to remember but for all the wrong reasons.
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