Wednesday, 29 July 2009

Debit cards may provide travel safety net

It was long assumed - until recently - that paying by debit card did not ensure you got your money back if an airline or other unlicensed travel company went bust.

Travellers using a credit cards, on the other hand, were protected under the Consumer Credit Act if they spent over £100.

Now it has emerged that you may, after all, be covered if you pay by debit card - though not under the Act. First evidence of this came to light after last year's XL collapse, when it turned out users of Visa debit cards were protected.

However, it appears holders of other debit cards may also have protection. You need to check the small print of your contract with the issuing bank. If you are covered and do need to claim - you should do so quickly.

And don't take no for an answer. Customer experience after the XL failure suggested some bank staff were unaware of such protection.

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