Holidays
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Customers are offered protection should Tour Operators go into liquidation. This protection is under the ABTA scheme of protection. All Tour Operators who are a member of the scheme have to provide guarantees or "bonds" so that if they become insolvent ABTA will reimburse advance payments made on holidays or if the holiday is already under way ABTA will try to arrange for it to continue, then arrange return travel. If the holiday involves an air package then the Civil Aviation Authority will be responsible for reimbursements or arranging the flights, etc. If a customer has paid by credit card they will also have the extra protection given under Section 75 of the Consumer Credit Act in that they can sue the credit card company for the return of the cost of the holiday. With regard to the resolution of disputes, the ABTA Arbitration Scheme is available. This scheme covers claims up to £1,500 per person or £7,500 per booking form. The dispute will be decided by an ABTA nominated arbitrator on paper only without a hearing. ABTA can also investigate any breaches of its codes and impose penalties such as a fine, termination of membership to ABTA or a reprimand.
Travel Insurance When choosing your holiday you should ensure that the Tour Operator is a member of ABTA. They will then have to abide by ABTA's Code of Practice and you will be protected by the ABTA scheme should the Tour Operator go into liquidation.
Organisations that can offer help
Association of British Travel Agents
Air Travel Organiser's Licensing (ATOL)
Which?
The National Association of Citizens Advice Bureaux
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