Christmas tips from the Financial Ombudsman Service to help protect consumers’ festive finances

• Consumers are being urged to watch out for some of the most expensive pitfalls of the holiday season.
• From stolen presents and fake gifts to winter weather damage and cancelled trips, we’re sharing some of the most common Christmas complaints.
• We’re providing tips to help consumers avoid the costliest festive mistakes.

We’re urging people to take precautions to prevent costly last-minute issues arising.

From gifts being stolen from under the tree to fake deals on the most-wanted gifts, or even the boiler breaking down just before the big day, consumers can be left with hefty bills if things go wrong over the festive period.

To help people plan, the Financial Ombudsman – which received just over 200,000 new consumer cases between January and September 2024 across all financial products – is offering a number of tips to protect Christmas finances.

Abby Thomas, Chief Ombudsman and Chief Executive said:

Christmas is often one of the busiest and most expensive times of year. When things go wrong it can be detrimental to so many people’s finances, which is why it’s important consumers take steps to protect themselves ahead of the festive period.

We’re calling on people to check their insurance policies and warranties, be vigilant to fraud and scams, and understand their rights. It’s also vital that businesses are open and transparent with their customers, treating them with fairness and understanding.

If people don’t feel they’ve been treated fairly by their financial provider, they can come directly to our service, and we’ll see if we can help. Getting a fair answer is free and easy.”

Our tips are as follows:

1. Make sure you understand what your home contents insurance covers in the event of a burglary

Expensive new gifts can make households prime burglary targets, so people need to fully understand their home contents insurance. It’s important to read all the policy details – there can be stipulations about alarms, door locks, and even how long the house is left unattended. It's important insurance providers have the most up-to-date information, and they have been notified of any changes to the property.

2. Add new valuables to your policy

If you receive high-value gifts such as electronics or jewellery, check that they will be covered by your insurance, and don’t underestimate their value. Most policies have a single item limit which can leave people under-insured for expensive items if they are not added to the policy. People should also make sure they keep receipts for any of the big-ticket items they receive in case they go missing or need to be returned, having proof of purchase can make it easier to deal with insurers. If you’re unsure speak to your insurer.

3. Protect yourself from frauds and scams

Everyone is looking for a bargain in the run-up to Christmas, but if the price sounds too good to be true, then it probably is. People should be wary of online offers being promoted on social media sites, and should never share their personal information, which can be used to steal identities and access bank accounts. If you have not used a company before, independently check its credentials before buying gifts. And if you’re waiting for a gift to be delivered, beware of postal fee scams. Fraudsters sometimes pretend to be legitimate delivery firms, claiming they have a parcel to deliver and ask for a small fee to get this done. It could be a ploy to obtain your personal information for an even wider, more elaborate scam. Be on your guard.

4. Understand your rights when using credit cards

Subject to certain criteria, Section 75 of the Consumer Credit Act 1974 covers purchases made by a credit card, point-of-sale loan or other finance. If a product is faulty or wasn’t as described and you can’t resolve this with the supplier, you may be able to claim back the value from your credit provider. To qualify the cash price of the goods or services must be more than £100 but less than £30,000. This is the cost per item – a purchase of multiple items which added up to more than £100 wouldn’t qualify unless they were sold as a set. 

5. Plan for emergency repairs in case of winter weather damage

With temperatures dropping, cold weather can increase the risk of burst pipes and flooding, especially in vacant homes. It’s important to check buildings insurance policies include water damage, especially if the home has been left vacant for an extended period. Insurers often provide guidance on how to protect from burst pipes and how to set your heating.

6. Check your home emergency cover

Don’t just assume that everything will be included in your home emergency policy. While many emergencies may be covered, including boiler breakdowns, blocked drains and storm damage to the roof, there can be some exclusions. It can also depend on how well you have maintained and serviced something like your boiler. Check your policy and, if in doubt, speak to your provider.

7. Review your travel cover before your festive trip

If you’re planning a Christmas getaway, carefully review your travel insurance policy before your holiday. It’s important to understand what’s covered, including delays, cancelled flights, lost luggage and unexpected illness. Some winter sports such as skiing can require an additional payment, and pre-existing health conditions may need to be declared. Cancellations often have conditions attached and the insurer is entitled to ask for supporting evidence.