Credit card protection should not be confused with insurance
Published On 5 March 2008
The UK's payment industry association has warned UK 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 had confirmed under section 75 of the Consumer Credit Act 1974 that UK consumers would be protected when purchasing goods overseas with their credit cards.
However, Mark Bowerman, a spokesperson for the association, 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.
According to research from Sainsbury's Travel Insurance, as many as one in five (19 per cent) of the 8.8 million people who booked a last minute summer holiday last year two weeks or less before they travelled did so without ever purchasing a proper travel insurance policy.
