Holiday firm collapse causes debt fears

The collapse of another travel firm could cause debt misery for thousands of Britons who don't have travel insurance.

Only travellers who booked package holidays will be protected by the ATOL scheme which provides a safety net for those whose travel company ceases trading, like Sun4U has.

However, those who have just booked flights or accommodation with the now-defunct firm could find themselves raking up hundreds or even thousands of pounds of debt, as they are not covered by the same protection.

Even those who may ultimately covered by the ATOL scheme may run up a large amount of debt in the short-term, as a number of hotels are reportedly billing package holidaymakers for items they have already paid Sun4U for.

Debt problems - raising children

28/02/2011

More people in the UK appear to be suffering from the debt problems brought about all because of the ...

Save to counter debt problems

13/01/2011

Consumers living in the UK who are currently trying to navigate the tough financial climate right no ...

Debt problems should be hit early

10/01/2011

Consumers struggling with debt problems should start the year as they mean to go on by tackling thei ...

Scots' debt problems – loan sharks

06/01/2011

The Scottish government is warning people who face debt problems north of the border not to be tempt ...