Does a credit card cover hotel accommodation only?

Loggo_2

I have booked a flight to the Caribbean using Avios. I now want to book accommodation via a travel agent. They tell me that I am not covered by ATOL or suchlike as it is not a package holiday. My question is - does paying by credit card for accommodation only give me cover if the travel agent or the hotel goes bust?:cool:

grumbler

MSE article: Section 75 refunds

As always with these things, a few exceptions escape the safety net...

When you buy through third parties. Travel agents, PayPal, group buying sites, etc.


You're unlikely to be covered when payments are made to a company that isn't the one providing you with the product or service. In these cases, the credit card company usually says it didn't have a direct relationship with the supplier, so isn't equally liable.

InsideInsurance

Loggo wrote: »

I have booked a flight to the Caribbean using Avios. I now want to book accommodation via a travel agent. They tell me that I am not covered by ATOL or suchlike as it is not a package holiday. My question is - does paying by credit card for accommodation only give me cover if the travel agent or the hotel goes bust?:cool:

Normally you would buy travel insurance and you can get cover for the separate elements that you buy.

S75 protection on your credit card would only cover you for a breach of contract by the company you paid the money to. So if the hotel went bust then it would cover you to get the money back from the agency for the hotel but highly unlikely for the flight as you'd be expected to book another hotel instead of wasting the flight.

S75 wouldnt help you if you missed the flight and therefore had no use for the hotel because that isnt the agency's fault.

Tingtong11

:(Hi everyone,

hope someone can help....My friend booked a hotel in Benidorm on the 2nd July 2013 through Clever Hotels.com and paid in full for x2 rooms (for 4 people - myself, hubby, my friend & his partner) for Sept 12th using his Capital 1 credit card.
He has just received an email from Navelar (their parent company I presume) stating that they have gone into liquidation & all hotel bookings are to be cancelled!
Can he claim for this under Section 75?

Many Thanks in advance

agrinnall

Tintong, I suggest you look on the Overseas Holidays board as there are several threads there already discussing the issue of Clever Hotels.

lisyloo

Normally you would buy travel insurance and you can get cover for the separate elements that you buy.

Travel insurance doesn't always cover you for companies going bust.
If you want specific cover make sure you check the policy.

Can he claim for this under Section 75?

Haven't read the other threads but yes this is what section 75 covers.

Tingtong11

I cant find anything about Clever hotels??? i also find this site very awkward to navigate round!!!

opinions4u

Tingtong11 wrote: »

I cant find anything about Clever hotels??? i also find this site very awkward to navigate round!!!

Use "Forum Jump" dropdown. Top right corner.

Or the search facility - even topper and righter.

Tingtong11

Thanx for your responses...so it looks like he should be covered under section 75??...thought I read somewhere you were not covered if you went through a 3rd party?? this is why im confused.
His c/card company didn't seem bothered until he mentioned section 75!...they were not sure and are looking into whether he is covered :sad:

dalesrider

Tingtong11 wrote: »

His c/card company didn't seem bothered until he mentioned section 75!...they were not sure and are looking into whether he is covered :sad:

Straight forward chargeback for non receipt.
Might need to wait till date of holiday before it can be actioned though.

He needs to get through to the disputes team for proper advice... not the front line staff.

InsideInsurance

Tingtong11 wrote: »

Thanx for your responses...so it looks like he should be covered under section 75??...thought I read somewhere you were not covered if you went through a 3rd party?? this is why im confused.
His c/card company didn't seem bothered until he mentioned section 75!...they were not sure and are looking into whether he is covered :sad:

Third parties are mainly referring to payment companies like PayPal because you dont actually pay the merchant but pay PayPal themselves who in turn pay the merchant. So your protection is effectively on if PayPal pay the merchant or not.

What "third party" are you talking about? Are you referring to the website just being an agent rather than the hotel themselves? In which case that wont make any difference.

In the first instance I would have asked for a chargeback to be done however this may not be successful if the company has gone into liquidation already.

You have up to 6 years to bring a S75 claim and the state of the merchant makes no difference so this is the fallback if the chargeback fails.