Many seniors participate in group tours. These tour packages could be at risk of losing their money if the operator goes out of business.

The National Tour Association (NTA), which represents about 640 tour companies, discontinued its consumer protection program after they paid out $565,000 in refunds to customers of six NTA member firms that went bankrupt. The NTA decision left the United States Tour Operators Association (USTOA), which represents 140 larger tour operators, as one of the only industry groups that offers consumers restitution if one of its members goes bankrupt.

Members of USTOA must have a $1 million &8220;consumer protection&8221; bond in force to maintain membership in the organization. Only one of the USTOA members went bankrupt in 2001.

Experts suggest some safeguards for consumers booking tours or other travel packages:

Pay with a credit card. This may offer the best – and least expensive – protection. Under the Fair Credit Billing Act, credit card customers can, within certain time limits, obtain refunds for goods and services they never received.

Under the law, charges can be disrupted within 60 days after they appear on a bill. Many credit card issuers extend the time – up to 90 to 120 days – to dispute charges, starting from the day a product or service was to be delivered.

Consider travel insurance. It can provide some protection against canceled or delayed trips and even cover medical care for travelers who become sick or are injured. Some policies also protect against &8220;supplier default&8221; or &8220;financial default,&8221; including bankruptcy.

Several insurers post lists of companies they will (or won&8217;t) cover in the event of bankruptcy or default.

It pays to read the fine print before buying insurance. Some policies go into effect a day after purchase, others not for a week or two. Premiums typically range from seven to 10 percent of a trip&8217;s total cost.

Experts recommend buying travel insurance from an independent firm, not from a tour operator or other supplier.

Dr. Marvin Copes is Education/Community Service Volunteer for AARP Alabama in Maylene. He can be reached by e-mail at mailto:mlcopes@charter.net