Is my holiday safe, or pay credit card?

BlondeHeadOn

I am about to pay for a holiday, and the company charge a fee for paying by credit card. I don't want to pay this, but I don't know whether to do so to make sure I have some cover if the company go bust.

I've just checked the travel company website, and they have the following FAQ:

"You can rest assured that your money is completely safe when you book .... as all reservations are protected by our HSBC trust account... which is administered by two independent signatories and fully complies with the Package Travel, Package Holiday and Package Tour Regulations 1992 No. 3233 Therefore your money is completely safe as we do not touch it until you return from your holiday."

Hmmm. Should I trust this or not? They are not ATOL/ABTA bonded, as far as I can see.

Moonchild

BHO, who is it - post a link?

Irrespective of talk about 'Trust Accounts' and 'Package Tour Regulations' if you are booking a flight & accommodation package holiday they must be ATOL bonded to ensure your money is secure.

Anything else would get me worried.

enevel

Hi.

Booking on a credit card, as you say, gives you extra protection. This protection is enshrined in the law - Section 75 of the Consumer Credit Act. This says that if the holiday company goes bust, the card issuer must give your cash back. This is only valid on purchases of over £100 (though some card issuers will give more preferential treatment).

One thing few people know is that if you pay a deposit of just £100 on the card, the whole purchase is covered. Yes - even if you pay the rest of the balance by cheque, cash or whatever. I know it seems counter-intuitive, and possibly unfair on the card companies, but it's the law.

So I suggest you pay a £100 deposit by credit card; pay the commission on that (which will presumably be £1.50 or £2.50); and pay the rest of the balance using some means that does not attract any additional commission.

BlondeHeadOn

Moonchild wrote: »

BHO, who is it - post a link?

Thanks Moonchild - Phoenix Holidays - see link below:

http://www.phoenixholidays.co.uk/FAQ.aspx#question9

It's one of the Highland Cruises I have booked, with the ship MV Lord of the Glens. This ship seems to be linked to and sold by lots of other different travel companies as well so not a small operator, and some of the alternative operators are ABTA protected. Just not Phoenix.

BlondeHeadOn

enevel wrote: »

Hi.

Booking on a credit card, as you say, gives you extra protection. This protection is enshrined in the law - Section 75 of the Consumer Credit Act. This says that if the holiday company goes bust, the card issuer must give your cash back. This is only valid on purchases of over £100 (though some card issuers will give more preferential treatment).

One thing few people know is that if you pay a deposit of just £100 on the card, the whole purchase is covered. Yes - even if you pay the rest of the balance by cheque, cash or whatever. I know it seems counter-intuitive, and possibly unfair on the card companies, but it's the law.

So I suggest you pay a £100 deposit by credit card; pay the commission on that (which will presumably be £1.50 or £2.50); and pay the rest of the balance using some means that does not attract any additional commission.

I didn't know that !! Could be very useful information, thank you!!

:T

pattycake

enevel wrote: »

Hi.

Booking on a credit card, as you say, gives you extra protection. This protection is enshrined in the law - Section 75 of the Consumer Credit Act. This says that if the holiday company goes bust, the card issuer must give your cash back. This is only valid on purchases of over £100 (though some card issuers will give more preferential treatment).

One thing few people know is that if you pay a deposit of just £100 on the card, the whole purchase is covered. Yes - even if you pay the rest of the balance by cheque, cash or whatever. I know it seems counter-intuitive, and possibly unfair on the card companies, but it's the law.


Yes, I did know that and it is exactly what I do. I have booked with Thomson this year and the supplement for paying by credit card is 2.5%. I paid the low deposit by debit card (£50 pp) and when the balance of the deposit was due (£130 pp) I paid by credit card. In April, I have to pay the rest and I will use my debit card again.

BlondeHeadOn

I guess the main question is:

is this statement...
"which is administered by two independent signatories and fully complies with the Package Travel, Package Holiday and Package Tour Regulations 1992 No. 3233 Therefore your money is completely safe as we do not touch it until you return from your holiday." ...worth the paper on which it is written?



Or is it a load of unenforcable rubbish?

Diamond_Olly

If there isn't an air element as part of the holiday, ATOL rules wouldn't apply anyway.

AngelEyes_2

Hi
I have also been wondering about paying for my holiday by credit card for protection, but having read this http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases under the heading 'Are there any exceptions?' I think paying a travel agent may not be protected, because when you buy from a travel agent you are paying them as a third party which isn't covered....unless I am not understanding it correctly?

BlondeHeadOn

AngelEyes wrote: »

Hi
I have also been wondering about paying for my holiday by credit card for protection, but having read this http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases under the heading 'Are there any exceptions?' I think paying a travel agent may not be protected, because when you buy from a travel agent you are paying them as a third party which isn't covered....unless I am not understanding it correctly?

Yes, I read that as well - and it confused me too!

I'm also not sure what constitutes a 'travel agent' - do online bookings with a holiday firm selling holidays for another tour operator count as an 'agent'? It's all a bit unclear....

moonrakerz

It's all in here...

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm