WSVN — If you have a credit card, many of them have insurance to refund your money if your trip is canceled or interrupted. It sounds great, but is it? It’s why one South Florida woman called Help Me Howard with Patrick Fraser.
If you travel a lot, it’s good to have a credit card that provides special benefits. Robin Reiter-Faragalli has one.
Robin Reiter-Faragalli: "It’s an executive level MasterCard, and according to MasterCard, if your trip is canceled or interrupted for certain reasons — weather and cancellation by the airline being one of them — we will reimburse you."
Earlier this year, Robin and her husband booked a trip to New York, using the Citi MasterCard, to buy two plane tickets, reserve a hotel and buy tickets to a Broadway show, all on that Citi MasterCard.
As luck would have it, this was the February weekend of Robin’s birthday celebration. The one a snowstorm decided to ruin.
Robin Reiter-Faragalli: "We weren’t able to take the trip because American Airlines canceled the trip flight due to weather."
Fortunately, American Airlines returned the cost of their plane tickets. The InterContinental Hotel returned their deposit. And then Robin contacted her credit card company to get the cancellation insurance to return the $420 for the two tickets to the Broadway show.
Robin Reiter-Faragalli: "We were turned down, and it was a mystery to me."
Robin then contacted Citi MasterCard, who told her their insurance didn’t cover her because…
Robin Reiter-Faragalli: "They told me I had negated my benefit when I used my mileage to upgrade. They said that meant that, not the entire cost of the trip had been charged to our credit card."
You heard right. Even though Robin paid for everything for the trip on her MasterCard, because she used her miles to upgrade from coach to first-class on American Airlines, her insurance was canceled.
Citi MasterCard told her that was their policy. Robin has another word for it.
Robin Reiter-Faragalli: "This loophole came not only as a surprise to me and my husband; it came as a huge disappointment. We have been MasterCard holders for over 30 years."
Well, Howard, can a customer who charges everything to a credit card, have their insurance canceled because they use miles to upgrade their seats?
Howard Finkelstein: "We have read the contract with the credit card company and the language regarding the insurance is ambiguous. And because it’s not clear, legally, the courts will interpret it against the drafter of the agreement and rule in favor of the customer, in this case Robin."
I contacted MasterCard. A spokesperson said, to take advantage of Citi’s trip cancellation and interruption protection, the cardmember must pay for the trip in full, including taxes and fees, with a Citi card.
I was told their insurance company did not consider it in full because miles were used to upgrade. However, "We at Citi understand this cardmember’s particular scenario and have issued a statement credit for the show tickets as a gesture of goodwill."
In other words, Robin got her $420 back.
Howard Finkelstein: "Credit card insurance is not great. After all, it’s free. So read your paperwork to see what’s covered, and if it doesn’t work, you can buy your own travel insurance to protect yourself."
Robin got her money back, and even though she didn’t get to go to New York for her birthday, she didn’t mind.
Robin Reiter-Faragalli: "The birthday celebration went out the window, but that’s OK because I was with my husband, and that’s a celebration anywhere."
Nice, and glad we could help. The credit card company does not reimburse you if a trip is canceled. They hire an insurance to cover the losses, and if you read the paperwork like Howard said, you will be surprised by the number of reasons they will not cover you and will not pay you. Although in Robin’s case, it didn’t specifically say, "Miles cancels the insurance."
Got a problem needing some first class treatment? Want us to take charge? Contact us. We don’t want credit, and you won’t be in debt ’cause we are truly free.
With this Help Me Howard, I’m Patrick Fraser, 7News.
CONTACT HELP ME HOWARD:
E-mail: helpmeHoward@wsvn.com
Reporter: Patrick Fraser at pfraser@wsvn.com
Miami-Dade: 305-953-WSVN
Broward: 954-761-WSVN
On Twitter: @helpmehoward7