Calls for protection review in Scottish Parliament

A politician has lodged a motion in the Scottish Parliament calling for more financial protection for customers, following the collapse of Globespan.

Scottish National Party MSP for Aberdeen North Brian Adam welcomed the move by the courts to put credit card processing firm E-Clear – thought to be responsible for the failure of Globespan – into administration.

However, he said there should be more protection for customers who had paid by debit card.

“If the administrators can recover money from E-Clear, it may repay credit card firms who have paid out to their customers, but the people who have really lost out are those who booked online with debit cards.

“The current system gives them no insurance and no support. It is these people who are dependent on money being recouped by the auditors and I hope sufficient funds are available to help them.

“They deserve greater protection and I am calling on the UK government and the travel industry to look at including debit customers in the same insurance scheme that is available to everyone else.”

The move follows a call from the Scottish Passenger Agents’ Association for a review of the financial protection system.

Meanwhile, Scottish National Party MSP and Transport Committee member Shirley-Anne Somerville said the administration of E-Clear would bring no comfort to former Globespan staff.

She said: “Former employees and the former owners must get satisfactory answers as to why and how E-clear was able to withhold such a large sum of money.”



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