CREDIT CARD – Section 75 Protection
As long as the item or service you claim on is between £100 and £30,000 when you have paid for part or all of your holiday by credit card you will be covered by Section 75 Consumer Credit Act 1974 if something goes wrong. This is because the credit card company is jointly responsible with the retailer or supplier and may be able to give you a refund.
However, how many consumers who either booked holidays cancelled through the Coronal Virus either
- Are not being offered a full cash refund OR
- Are having difficulty obtaining money back from their Credit Card Company while Card Companies a delay or argue about the terms and conditions?
Such arguments range from sending you back to argue with the travel company, argument as to who cancelled and when and if FCO advice was given and one bank stated that it is not paying out as the Covid 19 was an Act of God.
Delays, frustration and more delays – anything not to pay out!
There is no such protection under Section 75 for holidays paid for through a Debit Card. This comes under a voluntary chargeback scheme whereby Visa Debit Cards and similar may be able to authorise a chargeback of your monies paid but again it is voluntary and depends on the view taken by the bank.
Again you would think that this is straight forward but again not so. Delays and more delays and arguments about when and by who the travel was cancelled and whether this was after FCO was given.
Your money remains backed by the government’s Atol scheme while you hold a booking – even if the departure date has passed. That means you’ll get your money back if the company goes bust. That’s not necessarily the case if you accept a voucher – which is why customers are advised not to accept one. For flights, it’s slightly more complicated. As long as the airline is based in the UK or EU, or you are flying from an airport in the UK or EU, you must be offered the choice between being rerouted or refunded if the airline cancels your flight. This applies whatever the reason for the cancellation and however far in advance it occurs. Any refund must be processed within seven days. Find out more about the package travel regulations.