XL customers in line for extra payoutsXL customers could be covered for extra costs

18 September 2008

A tropical beach

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Stranded customers of failed holiday firm XL who paid by credit card should be able to reclaim extra costs incurred in getting back to the UK. 

Extra costs have included having to pay for flights back and additional accommodation costs overseas while waiting for a flight.

Thanks to Section 75 of the Consumer Credit Act 1974, XL customers who bought flights by credit card costing, in total, £100 or more will be able to claim back extra costs they've incurred from their card issuer. 

The Financial Ombudsman Service (FOS) has told Which? that in some circumstances 'reasonable costs' could be claimed to cover flights or hotel rooms that had to be paid for by holidaymakers left stranded abroad. Which? has more advice on . 

XL compensation

However, the Ombudsman says that each case will be decided on its own merits. For example, if you booked into a 5 star hotel for another week, or decided to fly back first class these are not likely to be termed 'reasonable' costs. Customers have a duty to keep their claims to a minimum but the circumstances at the time will be taken into account when considering whether costs are 'reasonable'. 

Affected consumers should put in a claim to their credit card provider, detailing all additional expenses along with receipts. The card issuer will probably want to see proof of purchase of the original flights so include the confirmation you received from the airline and a copy of the credit card bill the flights appear on.  If the provider turns down the claim for additional costs, consumers should always refer their case to the Ombudsman.  

There are no guarantees that claims will be upheld, but the Ombudsman has said that they will be considered.