Credit card cover for flights

Davek3737

Hi, we have flights booked for later this year, biz class, long haul from London to Asia. It looks as though the airline is not doing so well and appears to be struggling. If the airline fails I assume we can claim back the cost on section 75 but I think I read that consequential loss is also covered.  We have hotels booked direct  and we would wish to keep the trip even if the airline does fail.  So would we be entitled to rebook alternative flights of the same class, routing, dates and claim the extra cost back under section 75 .  Are we entitled to be put back in a position the same as we would have been if the airline had not failed.?  Obviously hoping it doesn't happen but just want to be be prepared and know what to do if it happens. Thanks 

Sandtree

S75 simply mirrors your rights with the merchant to the creditor. If the T&Cs of the airline mean they have to cover consequential loss then so would your credit card, if they exclude it then so would your credit card.

With airlines you can also get unstuck if you bought via an agent rather than direct.

Davek3737

Yes we are direct with the airline, I would argue that the contract was to get us from a to b on this date in this manner  and therefore if rebooking costs more then the extra should be covered, I am sure this has been tested in court but can't find the ruling. 

[Deleted User]

If the airline has issues, your first point of contact is your travel insurance which you booked with the flights, S75 may go on arguing for a long time particularly if you claim for hotel costs

Sandtree

Davek3737 said:

Yes we are direct with the airline, I would argue that the contract was to get us from a to b on this date in this manner  and therefore if rebooking costs more then the extra should be covered, I am sure this has been tested in court but can't find the ruling. 

Doesn't matter what you'd argue, it matters what the T&Cs say.  Its unlikely you have statutory rights to consequential losses and so the contract can cap/remove them. 

Davek3737

Deleted_User said:

If the airline has issues, your first point of contact is your travel insurance which you booked with the flights, S75 may go on arguing for a long time particularly if you claim for hotel costs

That is definitely incorrect. The insurance company would only come into force if there was no prospect of a refund from the jointly liable party, the card issuer.   

Davek3737

Sandtree said:

Davek3737 said:

Yes we are direct with the airline, I would argue that the contract was to get us from a to b on this date in this manner  and therefore if rebooking costs more then the extra should be covered, I am sure this has been tested in court but can't find the ruling. 

Doesn't matter what you'd argue, it matters what the T&Cs say.  Its unlikely you have statutory rights to consequential losses and so the contract can cap/remove them. 

I have some years ago claimed consequential loss for a car that was faulty.  They said any cost due to the fault was covered.  It does appear that s75 has covered alternative flight costs in previous cases. 

[Deleted User]

Davek3737 said:

Deleted_User said:

If the airline has issues, your first point of contact is your travel insurance which you booked with the flights, S75 may go on arguing for a long time particularly if you claim for hotel costs

That is definitely incorrect. The insurance company would only come into force if there was no prospect of a refund from the jointly liable party, the card issuer.   

Nope it's 100% correct, you claim on your travel insurance for the flight not being available, travel insurance companies will not refuse a claim and tell you to start a process that could take 6 months or more to argue with the credit card provider - not least because not everyone pays on a CC

born_again

They will go down chargeback route 1st to recover funds from airlines merchant bank.

Make sure you have travel ins in case they go belly up while you are out there. 

Davek3737

Deleted_User said:

Davek3737 said:

Deleted_User said:

If the airline has issues, your first point of contact is your travel insurance which you booked with the flights, S75 may go on arguing for a long time particularly if you claim for hotel costs

That is definitely incorrect. The insurance company would only come into force if there was no prospect of a refund from the jointly liable party, the card issuer.   

Nope it's 100% correct, you claim on your travel insurance for the flight not being available, travel insurance companies will not refuse a claim and tell you to start a process that could take 6 months or more to argue with the credit card provider - not least because not everyone pays on a CC

Insurers may require you to first seek refunds from other parties, such as a travel provider or from a card provider, before considering your claim. However, they must act reasonably and should not ask you to pursue a Section 75 claim if, for example, you are clearly not covered by Section 75.   FcA guidance. 

Davek3737

if your flights are cancelled or the airline refuses to fly you for a reason not set out in its contract with you, you should have a claim against the airline. If the airline does not meet this you may then have a right to claim under Section 75 or chargeback. If you suffer additional expenses as a result (because you have to pay for additional accommodation or living expenses) and paid using a credit card, you may be able to claim for these as consequential losses if they might have been reasonably anticipated under Section 75.  However you would not have a claim for these additional expenses using chargeback rights.