Aviation authority 'going back on credit card deals'

By UK CreditCards.com

When it's OK to fund your IRA with a credit card

Travellers who lost money as a result of the failure of travel company XL are being told to seek compensation from their credit card company.

Customers who used credit cards to book a holiday with the firm have been told they will not receive compensation under the Civil Aviation Authority's (CAA) ATOL scheme, according to BBC Radio 4's Money Box programme.

Instead, the CAA has said that XL customers should talk to their credit card providers, which are liable to pay out under the Consumer Credit Act.

The CAA had previously pledged to provide compensation for all customers who lost out as a result of the XL collapse.

Monica Jaimini, a lawyer at consumer group Which?, told the programme that ATOL should not be passing responsibility to the credit card industry.

"If someone has ATOL protection, then they should be complying with their obligations under that and making payments accordingly," she said.

A recent survey by Saga found that millions of Britons are using credit cards for large expenditures such as holidays in order to take advantage of the additional protection they offer.


Published: 12 March 2009