Posted by William Charles on January 13, 2020
Credit Cards

Published on January 13th, 2020 | by William Charles

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Chase Sapphire Reserve/Preferred Trip Cancellation Benefit No Longer Covers Financial Insolvency

Chase has made an unannounced change to the trip cancellation benefit offered to Reserve & Preferred cardholders. Previously this benefit clearly stated that it covered trips cancelled due to financial insolvency, the terms now clearly state that trips cancelled due to financial insolvency are not covered. I’m not sure when these changes were actually made, but reader brick who tipped me off to this change says that it was published sometime after December 1st (way back machine shows that in September it was covered). Even though the terms weren’t updated until after December 1st, there is a reddit user that tried to file a claim three months ago and was told it WAS NOT covered. This is a fairly big change and something you’d definitely expect to be covered, so keep that in mind.



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Ben
Ben

reddit link is just a copy of the wayback link

Alex
Alex

They probably got hit hard by Primera Air, WOW Air and/or Thomas Cook and decided it wasn’t worth it anymore.

Norveeegan
Norveeegan

They’re probably preparing for the onslaught of potential other airlines going defunct…

dan
dan

Is it still a benefit on the Ritz card?

Oliver
Oliver

That is actually a substantial change! I always assumed that any credit card would offer protection.

Jason
Jason

Maybe because it’s covered by the regular chargeback from Visa for not getting what you paid for?

Me
Me

Very important post, thank you Doctor! Ritz and Ink Preferred still have this https://www.chasebenefits.com/ritzcarlton https://www.chasebenefits.com/inkpreferred2 which are both dated Aug 2018, but I doubt either could last. TBH I even doubt if Ritz could last 🙁

Me
Me

United Club loses this too https://www.chasebenefits.com/unitedVW5, updated Dec 1 2019.

George
George

Just looked up my CIP benefits in-app, and it is NOT covered.

Me
Me

Interesting. I never know you could check benefits in the app. Mind sharing how?

George
George

Click the […] button on the one you want, and one of the options should be “Review card benefits”.

Me
Me

Thank you very much! This option though seems not to be available for all Chase cards (like my Ritz). I’ve always relied on chasebenefits.com, but it can be outdated.

George
George

It’s also not available on my Boundless, but is available on my Explorer.

The link to download my guide still downloads the 2018 version from the website. No notice of change and unable to download the “current” version (with the change)? C’mon Chase, you can do better than that!

(Unless the new version isn’t actually in effect… then Chase IT screwed up.)

Maybe TPG can give them a call and clear this up.

PT
PT

Amex’s new trip cancellation on the Platinum, Aspire, etc also does NOT cover financial insolvency. It says AIG is the carrier.

My guess is this is driven by the insurance companies.

Frito Pendejo
Frito Pendejo

If they company goes bankrupt and cant deliver the service, cant you just file a normal chargeback? Or is there more to this than I am seeing?

Brick
Brick

If you had to book a new ticket to get home or if you had to cancel hotel/car reservations because you could no longer start the trip, they would no longer be covered.

miafll
miafll

NEW tickets are never covered. Only PREPAID Unrefundable expenses PRIOR to the event happened, are covered.

Many thought the replacement flights are covered – NO THEY ARE NOT. And it has always that way.

Read the fine prints folks!

AJ
AJ

Could someone ELI5 on what does this actually mean and how this is not good? Thanks!

J Ro
J Ro

If daddy cannot pay for gas to take you to the park when you already cleaned up your room and fed the dog, your mommy won’t take you instead.

GooGooGaaGaa
GooGooGaaGaa

J Ro, that was brilliant!

David
David

You made my day! Im stuck in a bullshit meeting, and I read this and laughed

RD
RD

[deleted]

Sam
Sam

Wow Chase is becoming worse and worse, I actually had to use Financial Insolvency when Primera went bust

EWR
EWR

Scary times, my friend. Glad things worked out for you. Did you get it all back and some? I’m assuming this was for one of those ~$99 roundtrip fares to Europe, the ones that turned out to actually be too good to be true.

aubergine
aubergine

That’s pretty huge, and devastating for the average consumer. Who’s in a better position to wrangle with a defaulting travel company – a mega bank who will likely be in some control of their DIP finance or bankruptcy…..or a tiny consumer?

Be very careful booking travel far out on the dodgier carriers/vendors

TxTechWreckEm
TxTechWreckEm

I agree that this is significant. You’d likely get your money back through a chargeback, but hopefully this doesn’t happen in the middle of your trip, costing you a ton in last minute tickets/arrangements.

Bernie
Bernie

Hilarious because DoC is the first time I’m hearing of this and I have several of these cards. I guess the goons at Chase found a way to meet their legal obligations but not actually inform card members. Classic.

Charlie
Charlie

For those saying a chargeback through Visa is still protection from a merchant’s insolvency if services have not been rendered, how is this any different from the protection from Chase? Is it a more complicated and timely process? Do you still ultimately get your money back? Is the difference that Chase no longer pays for the additional expenses caused by the insolvency, such as booking a more expensive last-minute flight when your airline goes bankrupt a week before or during your trip? Even more reasons to stay away from Norwegian and Etihad.

miafll
miafll

New expenses such as last minute flights are NOT covered. Only those already incurred, i.e. nonrefundable flights, lodgings, transportation, museum passes etc are covered in a covered event that you stand to lose these PREPAID Nonrefundable expenses.

NEW expenses are on your own!

Charlie
Charlie

Thank you, miafll! Gotta love SoFla.

User
User

Years ago had a covered medical medical emergency happen during a trip. Family member hospitalized. Chase insurance paid for ambulance deductible. Had to extend stay by one day as family member was hospitalized still. Chase wouldn’t pay for this. Or fare difference. Airline waived the change fee but not fare diff. Chase would pay if we had to return earlier. After this episode I only
Used citi prestige (rip) because I called prestige benefit admin and they told me the scenario would have been covered by Citi benefit.

Jack
Jack

Last year we had a covered medical emergency that kept both spouse and I (I couldn’t travel) for three extra days. Chase covered the flight back. We didn’t do a change, we canceled our return due to not knowing when I could travel. Chase covered the flight back and expenses during those three days of trip interruption.

OnDemand
OnDemand

Lemme get this straight: $100 extra AF, b.s. DoorDash credit and Lyft discount (which I’ll never use), and take away benefits that matter. If they really wanted to lose card members, why not exchange the $300 travel credit with an Amex-style airline incidental worthless credit, too!

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