Bankruptcy and deposit

[weregoingcruising]

What happens to a deposit put on credit card if a cruise goes into bankruptcy? I know you must first open a dispute with cc company. If the cruise line fails to return the deposit will cc company refund the charges?

[Husky61]

Why don't you call the CC company and ask them direct?

[az_tchr]

7 minutes ago, weregoingcruising said:

What happens to a deposit put on credit card if a cruise goes into bankruptcy? I know you must first open a dispute with cc company. If the cruise line fails to return the deposit will cc company refund the charges?

You are asking in the wrong place. It would depend on the terms of your credit card. Do they provide travel insurance? Most do not.

 

Again Celebrity is a foreign company that is investment grade. A BK is unlikely, but would if it happened occur outside the US and takes months or years.

[patty1955]

17 minutes ago, weregoingcruising said:

What happens to a deposit put on credit card if a cruise goes into bankruptcy? I know you must first open a dispute with cc company. If the cruise line fails to return the deposit will cc company refund the charges?

Usually if you don't receive what you pay for you win the dispute. 

[RICCruisers]

13 minutes ago, az_tchr said:

You are asking in the wrong place. It would depend on the terms of your credit card. Do they provide travel insurance? Most do not.

 

Again Celebrity is a foreign company that is investment grade. A BK is unlikely, but would if it happened occur outside the US and takes months or years.

We have a Chase Preferred Card which does provide Trip Cancellation for some reasons. Here is one reasons that IS NOT covered:

  Financial insolvency of the Cardholder’s travel agency, tour operator, or travel supplier

A quick note on your comment about Celebrity/RCL being investment grade.  Carnival, Royal and Norwegian are getting close to being rated as Junk with their recent share price collapse with Carnival being the closest to Junk status.

 

Edited March 12, 2020 by RICCruisers
spelling

[weregoingcruising]

9 minutes ago, az_tchr said:

You are asking in the wrong place. It would depend on the terms of your credit card. Do they provide travel insurance? Most do not.

 

Again Celebrity is a foreign company that is investment grade. A BK is unlikely, but would if it happened occur outside the US and takes months or years.

My card has me covered if the  Financial insolvency of the Travel Agency.Tour Operator or Travel Supplier whose services you booked. Just looked it up in the Guide to Benefits booklet that came with the Chase Sapphire Preferred card.

[weregoingcruising]

2 minutes ago, RICCruisers said:

We have a Chase Preferred Card which does provide Trip Cancellation for some reasons. Here is one reasons that IS NOT covered:

  Financial insolvency of the Cardholder’s travel agency, tour operator, or travel supplier

A quick note on your comment about Celebrity/RCL being investment grade.  Carnival, Royal and Norwegian are getting close to being rated as Junk with their recent share price collapse with Carnival being the closest to Junk status.

 

It is not listed under not covered reasons in my Guide to Benefits on page 38. It is listed under covered reasons. Date on front of Guide effective 08/36/18.

[RICCruisers]

2 minutes ago, weregoingcruising said:

My card has me covered if the  Financial insolvency of the Travel Agency.Tour Operator or Travel Supplier whose services you booked. Just looked it up in the Guide to Benefits booklet that came with the Chase Sapphire Preferred card.

Have to disagree with you.  Here is the online quote for Chase Sapphire Preferred:

 

What’s Not Covered

This is not an exhaustive list. Examples include:

Travel arrangements canceled or changed by a common carrier, tour operator, or any travel agency unless the cancellation is the result of severe weather or an organized strike affecting public transportation

Change in plans or financial circumstances

A pre-existing condition

Traveling against the advice of a physician

A declared or undeclared war

Trips that exceed 60 days in duration are not covered

Financial insolvency of the Cardholder’s travel agency, tour operator, or travel supplier

[PTC DAWG]

Many have a 60-90 day limit for a "look back" on a dispute.  

[RICCruisers]

7 minutes ago, weregoingcruising said:

It is not listed under not covered reasons in my Guide to Benefits on page 38. It is listed under covered reasons. Date on front of Guide effective 08/36/18.

 

Here is a quote from the Online Benefits Book dated 12/01/19 Page 32 for What is Not Covered:

 

 Default of the Common Carrier resulting from Financial Insolvency or Financial Insolvency of a Travel Agency, Tour Operator, or Travel Supplier

 

Link:

 

https://www.chasebenefits.com/sapphirepreferred

Edited March 12, 2020 by RICCruisers
Added Link

[weregoingcruising]

18 minutes ago, RICCruisers said:

 

Here is a quote from the Online Benefits Book dated 12/01/19 Page 32 for What is Not Covered:

 

 Default of the Common Carrier resulting from Financial Insolvency or Financial Insolvency of a Travel Agency, Tour Operator, or Travel Supplier

 

Link:

 

https://www.chasebenefits.com/sapphirepreferred

I see date on yours is 12/01/19 and mine is 08/26/18. They never mailed me a new one so the one I have does show it as being covered. I wonder if they would honor the benefits that included when I made my deposits.

[az_tchr]

6 minutes ago, weregoingcruising said:

I see date on yours is 12/01/19 and mine is 08/26/18. They never mailed me a new one so the one I have does show it as being covered. I wonder if they would honor the benefits that included when I made my deposits.

No. You would have received it on a small piece of paper along with a statement. Easily missed. My notice was plain paper about 3" × 8". Easy to miss.

[Jeremiah1212]

54 minutes ago, patty1955 said:

Usually if you don't receive what you pay for you win the dispute. 

In the case of fraud...probably. Bankruptcy is much different. It’s not a dispute, per se. Credit card issuers have policies in place to protect themselves from loss in this scenario. If a merchant actually files bankruptcy a purchaser seeking a few hundred dollar credit is quite literally near the bottom of the barrel among those who are going to get paid back during bankruptcy.
 

You may eventually get your money back, but chances are you will have forgotten about it before you actually see it again. 

[patty1955]

13 minutes ago, Jeremiah1212 said:

In the case of fraud...probably. Bankruptcy is much different. It’s not a dispute, per se. Credit card issuers have policies in place to protect themselves from loss in this scenario. If a merchant actually files bankruptcy a purchaser seeking a few hundred dollar credit is quite literally near the bottom of the barrel among those who are going to get paid back during bankruptcy.
 

You may eventually get your money back, but chances are you will have forgotten about it before you actually see it again. 

Having worked for the bankruptcy court for 30 years, I understand about bankruptcy. The debtor's creditor would be the credit card company, not the traveller. You should win the charge back. 

https://www.mercurynews.com/my-airline-is-bankrupt-can-i-get-a-refund

[Iamthesea]

I would be more worried about a travel agency (we book through one) than I would be about the cruise lines going bankrupt.  DH and I had this conversation last night.  We decided should we book a future cruise anytime soon, that we would probably book direct with the cruiseline this time. 😉

[jelayne]

1 hour ago, weregoingcruising said:

It is not listed under not covered reasons in my Guide to Benefits on page 38. It is listed under covered reasons. Date on front of Guide effective 08/36/18.

Agree I have the same Guide, same date and it listed under Covered Reasons

[chrismakris]

I really can’t see RCL going bankrupt. I went over their limited financial data provided by financial websites and they should be okay cash wise to survive a few month disruption to their business. 
 

If this continues then I see a delay in the next wave of new ships first, followed by layoffs and if that doesn’t stop the bleeding then you might see the start of rumblings of bankruptcy. 

[RICCruisers]

3 hours ago, weregoingcruising said:

I see date on yours is 12/01/19 and mine is 08/26/18. They never mailed me a new one so the one I have does show it as being covered. I wonder if they would honor the benefits that included when I made my deposits.

Weregoingcruising - You May be covered if you booked this cruise prior to Chase making the change in their coverage. We booked a cruise in 2018 using the United Explorer card and it included Trip Cancellation Insurance when we booked it in 2017. It was also a Chase Card, United Explorer. They changed their coverage after we booked but covered our cancellation since it was a benefit when we booked it. We had to provide lots of paperwork to get our money back and it took about 5 weeks of going back and forth with the insurance company but eventually we got about $3900 back that covered the cruise, airfare, hotel. As an FYI the Card Benefit website that is used to make your claim is actually Allianz one of largest travel insurance companies around. They know their stuff and require you to provide lots of information, but they are actually pretty easy to work with. Hopefully your cruise will go off with no issues and you won’t have to put in a claim. 

 

We we have a B2B booked in September on Reflection that we plan to take as long as this Covid situation seems under control. 

[Cruise Junky]

1 hour ago, chrismakris said:

I really can’t see RCL going bankrupt. I went over their limited financial data provided by financial websites and they should be okay cash wise to survive a few month disruption to their business. 
 

If this continues then I see a delay in the next wave of new ships first, followed by layoffs and if that doesn’t stop the bleeding then you might see the start of rumblings of bankruptcy. 

I’m not saying this is fact, but you should read it. 

 

https://www.ccn.com/the-u-s-stock-market-crash-will-bankrupt-these-3-companies/