Don’t mistake credit card protection for insurance

The UK’s payment industry association, APACS, has warned British consumers that they should not mistake overseas credit card protection for travel insurance .

APACS explained that a landmark ruling by the House of Lords last October could mislead holidaymakers . The ruling confirmed under section 75 of the Consumer Credit Act 1974 that UK consumers would continue to be protected when purchasing goods overseas with their credit cards .

A spokesperson for the association, Mark Bowerman, warned that while everyone is covered by section 75, consumers should not confuse this cover with the financial protection provided by a travel insurance policy.

“Section 75 covers everyone, by right, through the 1974 Consumer Credit Act, but customers should not confuse this with travel insurance . If you are concerned about having travel insurance then you need to seek advice from your insurance or your credit card company,” he said.

Research carried out by Sainsburys Travel Insurance last year, found that one in five (19 per cent) of the 8.8 million people who booked a last minute deal, two weeks or less before they travelled, did so without purchasing any travel insurance, in order to save money .

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