| With the recent collapse of the XL travel | | | | that should you be the owner of a Visa debit card |
| company, several thousands of holiday makers | | | | you have similar rights to those with a credit card, |
| have been left stranded and helpless. As many | | | | in what is known as a chargeback scheme." |
| holidaymakers chose to organise their holidays, | | | | He added: "Unlike the credit card protection there |
| with independent travel operators, and without a | | | | is no minimum or maximum limit on the purchase, |
| travel agent; this choice, though cheaper, put | | | | however you must apply for compensation within |
| them in a dangerous position. | | | | 120 days of the date the goods were due to |
| The finances that they used to pay for the | | | | arrive. |
| holidays abroad will be lost as they did not take | | | | "Unfortunately, those that paid by alternative debit |
| out protection to safeguard them, if their holiday | | | | cards may find they do not have any protection |
| operator loses its own finances. | | | | at all." |
| Simeon Linstead, head of personal finance, | | | | The Association of British Travel Agents (ABTA) |
| explains the position that many British holiday | | | | is now calling on the Government to provide |
| goers have seen themselves in. He said: "While | | | | protection for all the travelers involved. |
| those consumers who opted to purchase a | | | | Mark Tanzer, ABTA chief executive, said: "The |
| package deal will benefit from Air Travel | | | | failure of XL demonstrates the virtue of financial |
| Organisers' Licensing protection (ATOL), those | | | | protection, and the hazards of travelling without it. |
| who chose to book their own flights and bypass | | | | We shall renew our call on government to |
| agents - at least 10,000 in the case of XL - will | | | | address this issue as a matter of the utmost |
| not benefit from this type of protection and could | | | | urgency. |
| have lost their hard-earned cash." | | | | "Until the situation is reformed and made |
| For those holidaymakers however, that used a | | | | consistent, we recommend that travelers buy |
| credit card to pay for their travel tickets, | | | | package holidays from ABTA Members, as these |
| protection is available and they will be able to get | | | | provide full repatriation and refund protection." |
| a refund, quite simply. Credit card purchases are | | | | The number of British holiday makers being |
| protected by Section 75 of the Consumer Credit | | | | covered by ATOL has fallen in recent years due |
| Act, which states that the credit card provider is | | | | to the internet making it easier to book flights and |
| partially responsible for the purchase and the | | | | accommodation. Estimations show that the |
| credit card user has legal right to a refund. | | | | number of those protected by ATOL has fallen |
| Mr Linstead added people using a Visa debit card | | | | from 98 per cent in 1998 to 61 per cent this |
| also have similar protection. In relation to this fact | | | | year. |
| he said: "Some consumers may not be aware | | | | |