Travellers Urged to Pay By Credit Card

By Lisa Smyth

THE Trading Standards Institute (TSI) has called for an urgent change in the law to protect holidaymakers across the UK.

In recent weeks, people from Northern Ireland have been caught up in the collapse of a number of travel operators and airlines – with fears that more companies may go bust.

And the organisation has advised anyone planning to book a holiday to consider paying for their break by credit card

TSI has campaigned for a number of years to get the government to offer the same level of protection for consumers who book flights independently as those who book a package holiday.

At the moment, only consumers who have booked a package holiday have protection if a tour operator collapses.

There is currently no protection for those who buy scheduled or budget airline flights separately, meaning many consumers who have bought a flight independently will find themselves losing their money or paying extra to get home.

TSI has renewed calls for a change in the law after thousands of holidaymakers around the globe were left stranded when XL Leisure Group went into administration.

Ron Gainsford, chief executive of TSI, said: “The government has to see the folly of the current unsatisfactory consumer protection and repatriation scheme and act quickly to plug this loophole in the law in order to protect all consumers who travel by air.

“The current economic climate has placed pressure on the travel industry and it is quite possible more airlines will go bust in the future. With more and more people choosing to book flights independently, it is vital these consumers are afforded the same level of protection as those who have chosen to buy a package deal.”

Bruce Treloar, TSI lead officer for travel and the holiday industry, said: “As long ago as 2005, after the collapse of a scheduled airline, TSI highlighted the loophole in the law at a meeting at of the All Party Parliamentary Group for Consumer Affairs and Trading Standards at the House of Commons.

“The Civil Aviation Authority (CAA), under the CAA ATOL scheme, or the Association of British Travel Agents arranges repatriation for package holidaymakers stranded abroad.

“But passengers who have booked independently have to make their own arrangements to get back to the UK if an airline collapses, resulting in extra expense, hassle and worry for the consumer.

“Under consumer credit regulations, consumers will get their money back if the holiday costs more than Pounds 100 and any part of the cost is paid for by credit card. This is helpful for travellers who have purchased the separate components of their holiday independently.

“However, these consumers are still left with the burden of making alternative travel arrangements to get home in the event of their chosen airline going bust.”

Mr Treloar advised anyone planning a holiday in the future to consider paying by credit card.

“As the law stands, credit card companies are jointly liable for debts of more than Pounds 100.

“We do not always advise people to pay by credit card, but credit card companies will have to help you where goods and services cost more than Pounds 100. This applies to all purchases not just holidays,” he said.

Originally published by Lisa Smyth lsmyth@belfasttelegraph.co.uk.

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