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"Credit cards may not protect volcano travel victims"

By Reno | April 22nd, 2010 | General

The volcanic cloud that has seen British airspace effectively closed down recently has caused massive disruption for travellers, not to mention costing many people a lot of money. Stranded passengers have had to shell out for accommodation, food, and in some cases alternative transport whilst unable to get back to the UK.

It was recently reported that some insurance companies were trying to find loopholes to get out of paying on claims made by stranded passengers who have had to pay out from their own pockets, and this is likely to cause a flood of complaints. Some passengers, however, may have booked their travel on their credit cards, and may think that they are covered under the Consumer Credit Act.

However, one recent report has claimed that some credit cards may also turn down claims as a result of the airlines and travel companies deeming the volcanic ash situation as ‘exceptional circumstances’ or ‘an act of God’. If this is the case then many of those that think that they have their credit card provider as back up could be sorely disappointed.

The data has come from the UK Cards Association, which has stated that if travel companies and airlines do not reimburse customers because they have something in their terms and conditions about non-refundable costs in exceptional circumstances or due to an act of God then credit card companies will not be obliged to reimburse customers.

The UK Cards Association said that the consequential cover under which cardholders may be covered was quite confusing in light of the current, unusual situation.

The association stated: ‘It’s not clear what this cover means, so it matters on a case by case basis. You can’t just book a five-star hotel to tide you over if you were staying in a three-star for the length of your holiday. It’s very vague. Card companies have not seen any claims yet. We’ll have to see how this plays out as everyone is still trapped abroad. Our advice is to keep all your paperwork when you put in a claim.’

Tags: finance, compensation, Credit Cards, travel, cover

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