ABA Family Legal Guide

Contracts and Consumer Law

Special Consumer Protections

Travel

How can I protect myself when paying for charter tours?

Your money often takes a twisting route to the tour operator. This leaves you vulnerable at the many different stops that exist in between. The best approach is to pay by credit card, and receive the protections of the Fair Credit Billing Act. If you pay by check, the tour operator's brochure usually will specify the name of an escrow bank account in which all payments eventually go. Make out your check to that account. Also, if possible, put the destination, dates, and other details on the face of the check, which should guarantee that the payment goes where it should. That may help you get your money back if the tour is canceled or if the tour operator or travel agent goes out of business. Your contract is with the tour operator.

U.S. Department of Transportation regulations require that you be shown and sign an operator/participant contract, which describes your rights, before your payment is accepted. Demand it if it is not offered to you.

Some operators carry bonds to reassure their customers, rather than using escrow accounts. If an operator doesn't have an escrow account, ask whether it is bonded and how you would be reimbursed in case of default.

Often, the travel agent will insist that the check be made out to the travel agency, because it is the policy of some agents to write a single check to the tour operator themselves. That's fine, but insist on a written guarantee from the tour operator and the agency, and make sure that the agency's check is made payable to the tour operator's escrow account. Reputable agents and operators should be willing to stand behind the tour.

You also can protect yourself by getting trip insurance. This guards you if you have to cancel the trip because of your illness or an illness in the immediate family. Various types of trip insurance, as well as message relaying and referrals to overseas legal and medical help, are also provided free by many premium credit cards.