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Consumer protection laws could fail to protect travellers

February 24, 2010 by admin  
Filed under News, News-Insurance

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Over the past couple of years many people that have booked flights and holidays have been shocked to hear that the holiday firm or airline that they booked through has gone bust, leaving them wondering whether they are entitled to a refund in addition to ruining their holiday plans.

One recent report has claimed that many people that find themselves in this situation could find that they are not protected because of a gap in laws.

The report claims that millions of Brits could find that they are unable to get help if their airline or holiday firm goes bust over the course of this year because of the problems with consumer laws. This would mean that although they might find themselves stranded abroad or could lose out on their holiday they may have no grounds to claim compensation. More than sixty airlines and holiday firms are said to have gone bust over the past couple of years.

Consumer laws appear to centre around those that book package holidays, which is what most people used to do before the Internet came along. However, these days many people find it cheaper and more convenient to book their own hotel and flight rather than go for a package holiday, and these are the people that could find themselves being let down by consumer protection laws.

One MP spoke out about the dated system, stating: ‘The system worked 40 years ago when we all went on package holidays. There is a gaping hole in consumer protection. It would be so much better if we all paid a levy of £1 on a flight, so we can build up a fund that could compensate travellers for failure. The current situation is crazy.’

Tags: Package holiday, travel insurance, firm goes bust, Brits, consumer protection

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