Originally Posted by
tzskipper1
In cases similar to NK's, the credit card companies routinely increase the "holdback" money (a percentage of the price of a purchased ticket). This is held back money that (I believe) the credit card companies pay the airline once the purchased flight is completed. So in a sense, if the airline shuts down, a ticket purchased with a credit card can be refunded back to the affected passenger.
The "holdback" by the credit card companies cut both ways though; it places limits on a carriers cash flow at a time most needed.
Again, this is all from memory of a past experience. Truly wish the best for the NK employees.
S
Yes that would be normal. But that's a business decision on the part of the CC companies. Not a blanket imposition by the court.
CC companies do that not to pro-actively protect the consumer, but because they are already on the hook in many or most cases, based on their agreements.
My thought in response to the bond idea was that anyone that stupid deserves to lose their money. If you're smart enough to use a CC that has built-in protections, then you don't lose your money.