» Use
a credit card. When selecting a supplier rumored to
be in financial trouble, consumers should pay by credit card.
Under the Fair Credit Billing Act, credit card customers have
the right to refuse paying for charges for services not rendered.
Details of the Fair Credit Billing Act can be found at the Federal
Trade Commission's Web site.
» Consider
insurance. Some travel insurance policies may include
supplier default protection. However, before purchasing insurance
consumers should check with their ASTA member travel agent to
determine what policy best meets their needs.
» Remember
Section 145. Through Nov. 19, 2005, when Section 145
expires, consumers who already have purchased a ticket on an
airline that ceases operations may be entitled to stand-by travel
on other airlines. Section 145 of the Aviation and Transportation
Security Act provides that airline passengers holding tickets
(paper or electronic) from a bankrupt carrier for a particular
route are entitled, at minimum, to transportation on a space-available
basis on ANY airline currently serving that route within 60
days after an airline has suspended operations. Additionally,
the maximum fee that an airline can charge for providing standby
transportation should not exceed $25 each way.
» File
a claim. If all else fails and a consumer is unable
to take advantage of the Fair Credit Billing Act or Section
145, they should file a claim with the bankruptcy court. The
bankruptcy court usually provides filing instructions, including
claim forms, within months after a bankruptcy is filed.
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