Section 75 question

neo1607

I've got a holiday booked via Thomas Cook for Oct 2020, currently paying it via Interest Free direct debit payments. Having seen a few things on the news last about Thomas Cook potentially going bust if I was to make a 1 off payment towards the holiday on my credit card am I still protected even though I'm 4 months into the direct debit schedule?


I'm not here to argue whether they are going bust or not, and I know it's ATOL protected anyway, I'm simply asking for peace of mind if I can still protect it under Section 75 or not or do I have to make the card payment before starting a direct debit schedule?

eco_warrior

Hi Neo

If Thomas Cook will allow you to make a partial payment towards the holiday (of any value) on your CC then yes S75 coverage will kick in, subject to its usual rules and requirements.


If TC go bust and your holiday is cancelled prior to the travel date, its almost guaranteed that ATOL will pay out on the amounts paid via Direct Debit, meaning there would be no requirement for help from your card provider for those, only what was paid on the credit card. That's how it usually works anyway.


Might help for things like consequential losses I suppose. Although if you are stranded then ATOL will get you home at no extra cost.

neo1607

I assumed ATOL would be fine, got the missus nipping in my ear though that she's stressing out so I suggested to her I could go put it on my CC as well just to give peace of mind, although I've found in the past ATOL protection is quick and easy to deal with

eco_warrior

If it keeps the other half happy then its most definitely worth it

bris

CC S75 will not kick in as it's ATOL protected, they are legally obliged to cover the losses.


S75 means the CC co is equally liable yes, but they have the same rights as the retailer and that means they get the same ATOL protection so they will not pay out unless ATOL also fails.