Credit cards ‘offer more protection’

Buying things on credit cards can offer more protection than other methods of paying for goods and services.

This point was noted by the BBC in a question and answer feature on the collapse of holiday firm Flyglobespan.

The corporation noted that provisions in the Consumer Credit Act stipulate that the cost of any item priced at over £100 must be refunded in full if it is bought on a credit card.

It noted that the same protection is not provided by other cards, though current account holders using visa debit cards can get their bank to pursue a claim to recoup the lost money.

On the other hand, users of switch and maestro cards have no entitlement to get anything back.

Those getting a credit card to make purchases may wish to ensure they also get the best rate and other good terms and conditions.

Using cards may be a wise move concerning tour operators in the current economic climate, with Direct Line Insurance noting that around the world, 60 travel firms have now gone bust over the past two years.

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