No protection for pre-paid card users

Ryanair last week announced controversial plans to make paying by their own, special pre-paid credit card the most cost effective way of travelling with the airline. Sounds a faff to get a new card, just to travel on Ryanair, but in the long-term, probably worth it?

Think again money fans, as the prepaid card is not protected by the Financial Services Compensation Scheme (FSCS).

These cards, look, smell and are used like any other cards to pay for goods, only you can only spend what you've preloaded on to the card.

But should the provider get into desperate straits, consumers should know that the FSCS will not protect you.

Mark Neale, chief executive of the FSCS, said: 'In recent years, prepaid cards have become increasingly common, especially for those people who are unable to get standard bank accounts with debit or credit cards.

'Before taking out any products, consumers should ensure they should visit our website or ask the provider about FSCS protection.'

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