Credit card firms tougher on travel agents
By UK CreditCards.com
Credit card firms are becoming less willing to deal with travel agents due to the recent collapse of several travel firms.
Independent agents have reported strained relationships with credit card providers since the collapse of travel firms Freedom and XL Leisure, Travel Weekly reports.
The legislative protection to cardholders afforded by the Consumer Credit Act has added to credit card firms' nervousness in the recession. According to the legislation, the card issuer might have to bear the cost of holidays booked with a firm that then goes out of business prior to departure date.
Financial pressures caused by the economic downturn seem to have led to some firms pulling the plug on agents in response. Kevin Dowling, director of Travelandmore, told the news source that he had had problems with his provider Barclays, which wanted to restrict its services so that credit card payments would take 30 days to process.
Mr Dowling said: "It was squeezing the life out of the company. We take a lot of last-minute bookings, so the tour operators have to be paid straight away." He added: "After spending hours on the phone to the company, explaining every aspect of the business, our usual method was restored."
Published: 5 June 2009
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