U.S. warns airlines about limits on lost-bag payments

Airlines shouldn't be too cheap when it comes to helping customers whose bags are lost.

The Transportation Department said airlines can't arbitrarily limit reimbursement for travelers who have to replace necessities when bags are lost or delayed.

The department said several airlines have policies saying they'll only reimburse passengers for necessities bought more than 24 hours after they arrive without their luggage. They also limit payments to outbound trips, meaning customers foot the bill for replacing items lost on the flight back home.

The agency said those policies violate federal rules requiring airlines to cover all expenses caused by lost or delayed baggage up to $3,300 per passenger on domestic flights.

The Transportation Department said it would monitor the situation for 90 days and then take enforcement action against airlines that don't comply.

Airlines usually spell out their policies in the contract of carriage on their Web sites. For the largest six U.S. carriers -- Delta, American, United, Continental, Southwest and US Airways -- their policies clearly state they will cover up to the legally required $3,300.

Information about reimbursements for necessities such as toiletries is often contained in printed handouts from ticket agents or other airline employees.