FNB Credit Card Insurance still Refuses Refund After STA Travel Collapse

am extremely disappointed with the way First National Bank (FNB) has handled my claim relating to the collapse of STA Travel.

On 9 December 2019, I paid a R3,000 deposit to STA Travel using my FNB credit card. Shortly afterwards, the COVID-19 pandemic hit and STA Travel ceased trading. Since then, the company has been completely uncontactable and I have never received any refund or voucher.

Because the service I paid for was never delivered due to the company’s closure, I submitted a claim through my FNB credit card insurance, believing that this type of insurance is meant to protect consumers when a merchant becomes insolvent or stops trading.

Unfortunately, FNB declined my claim, stating that STA Travel had supposedly communicated that vouchers would be issued. This has never happened, and to this day I have received no communication, refund, or voucher from STA Travel.

I escalated the matter to the Ombudsman for Banking Services, hoping for a fair review, but my complaint was dismissed.

It is extremely concerning that consumers who pay for credit card insurance appear to have no protection in situations where a company collapses and fails to provide the service paid for.

I would appreciate if FNB could review this matter and provide a fair resolution, as I am simply trying to recover the R3,000 deposit for a service that was never delivered.

Has anyone else experienced a similar situation with FNB credit card insurance claims?