Credit cards 'can offer valuable protection'

By Sarah Engle, Mon 1 Sep 2008 - Published in Credit Cards

Paying for goods and services with a credit card can offer customers valuable protection if things go wrong, according to uSwitch.

In the light of the collapse of Zoom Airlines, the group is urging people to think more carefully about how they pay for things.

It claims Zoom going bust could leave 60,000 people struggling to get money back for unusable tickets.

Those travellers who purchased their tickets by credit card should get a refund, it claims.

However, holidaymakers who used their debt cards may not have any protection at all.

Simeon Linstead, head of personal finance at uSwitch, said: "As the credit crunch puts more and more companies in jeopardy, consumers should think carefully before making any big purchases if they are hoping for some form of protection."

In other news, Sainsbury's has claimed that the reward schemes offered by some credit card companies are not worth the effort.

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