A fool and his money are soon parted.. not just the fools it seems

Posted by Jessica Searle in Personal Finance on 5 April 2013 - Jessica worked as a Credit Analyst at checkmyfile until 2013

As financial troubles hit throughout Europe, more holidaymakers are putting their spending money at risk by taking larger sums of cash with them to Europe. Due to fears over the ability to withdraw holiday funds, following bank closures and ATMs restricting amounts or completely running dry in Cyprus, c. Last Thursday, for example, following the reopening of banks in Cyprus, travellers were permitted to take only €100 out of the country.

Experts have urged – mainly concerning those heading to Cyprus, Greece, Spain and Italy - to check their insurance policies too, as insurers tend to cover only limited amounts of cash. Some will not cover spending money at all, others only up to a small amount, such as £150 with a £100 excess to pay.

Age can also affect your travel insurance policy. Travellers under 18 may only able to claim up to £25 if money goes missing whilst on a beach, compared to the £50 of over 18s. This is all very insurer-specific, some specialist policies may cover more, but you will have to enquire beforehand and possibly be subjected to an extra premium. As such, it is vital to read your policy if you are unsure on any points before jetting off, and do not leave it until after the holiday.

Regarding a claim, most insurers will want proof that you had the cash in the first place, so the receipt from the bureau de change is essential, a crime reference number from the local police if it was stolen will also assist greatly. If seized by the authorities at the airport due to a local law, you won’t be able to claim on your policy.

This is as the Financial Ombudsman Service warns that not even these proofs will not be enough for all insurance companies. “Some firms can be officious. Insurers can turn down claims because the money is locked in a suitcase and not in a safe,” says a spokesman. “One complainant took the trouble of photographing their cash in the hotel safe as a precaution. However, their insurer still would not pay up when the cash was stolen because they could not prove the money in the picture belonged to them... And even if you have a receipt showing a withdrawal, it can be hard to prove you didn’t spend it.”

The alternatives to cash can also present problems. Travellers cheques are currently advised to be avoided.

Credit cards, debit cards and pre-paid cards are your best bet, but you will always need some cash.

”It’s always good to take a mix of ways to pay for your holiday expenses”, says Bob Atkinson of travelsupermarket.com. “But if you take plastic, you may find restrictions. Bank transfers are frozen, so shops and services that rely on cash flow from credit card transactions may be insisting on cash.”

After a rather tumultuous time, Cyprus has finally secured a rescue deal for its banks, seeing its 'rich' savers – those with more than €100,000 (£85,000) — forfeit vast sums of their savings in exchange for bank shares.

Unfortunately this means for those of you heading to Cyprus on your jolly holidays, large amounts of cash is your only safe option. So keep an ever watchful eye on those pennies... euros... cash... whatever, and make sure that you spend it all, save perhaps just €100.

Jessica Searle is a Credit Analyst at checkmyfile and has a degree in English Literature from the University of Exeter. You can contact her at jessica.searle@checkmyfile.com

How does APR work? – Your questions answered

APR stands for Annual Percentage Rate and is a standard measure that allows you to compare the total cost of credit from different lenders.

Published on 30 Aug 2019 by Andrew Brown

Full Article

Check your Multi Agency Credit Report before the PPI deadline

The PPI deadline is at 11.59pm on Thursday 29 August. After this point, you can no longer submit applications to reclaim any PPI you are owed from lenders. If you’ve not done it, the time is now to check whether you are owed money. If you start your PPI application before the deadline, it’s still possible to reclaim what you’re owed.

Published on 28 Aug 2019 by Andrew Brown

Full Article

How interest rates are calculated

If you’ve ever applied for a form of credit, you may well have discovered to your cost that the advertised APR and the interest rate you’re offered if you are accepted can be very different things.

Published on 14 Jun 2019 by Richard Catlin

Full Article

The Importance of Proving Stability to Lenders

In addition to the key roles that your Credit History and Affordability play in determining whether or not you will be accepted for credit, we regularly talk about the importance of being able to demonstrate your ‘stability’ to potential lenders.

Published on 15 Mar 2019 by Sophie Regester

Full Article

If I Change My Name Can I Still Get Credit?

Legally changing your name is an increasingly popular thing to do in the UK: while getting married or divorced still makes up a large proportion of this, there is a growing trend towards people changing their name following civil partnerships, a change in gender, living in blended families, or simply because they’re seeking a change – the list is long.

Published on 22 Feb 2019 by Tom Magor

Full Article

Which Credit Report Information Can Landlords See

These days whenever you rent a property you may be required to pass checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to reliably make rent payments to the property on time.

Published on 7 Feb 2019 by Kevin Pearce

Full Article

What Credit Checks Look For When You Switch Energy

As we get deeper into Winter, it’s inevitable that millions of consumers across the UK will end up using more energy and spending more on bills due to the colder weather and long stretches of darkness.

Published on 9 Jan 2019 by Jamie Mackenzie Smith

Full Article

Pros and cons of going paperless

Whether you are environmentally motivated or simply to get a discount for moving your billing online, you might find it makes sense to abandon paper for your business, if you haven’t already.

Published on 7 Dec 2018 by Kevin Pearce

Full Article

How To Get The Best Car Finance Deals

New car sales may have slowed in recent years, with the economy, emissions scandals and Millennials all being cited as the root cause at one point or another. But the number of people choosing to use credit as a means of driving away in a new car continues to rise, according to figures from the Finance & Leasing Association which shows that the new car finance market grew by 15% in July 2018 when compared to the previous year.

Published on 8 Oct 2018 by Kiah Phillips

Full Article

We're Now More Likely To Be Borrowers Than Savers

UK Households are now more likely to be borrowers than savers, with savings at their lowest since 1963, according to a study by the Office for National Statistics. Households are increasingly borrowing more – by taking out loans, car finance, and mortgages – than they are collectively depositing into savings accounts.

Published on 5 Oct 2018 by Sam Griffin

Full Article
keyboard_arrow_left

keyboard_arrow_right

We are rated number 1 for customer service on