Save billions with credit card price protection

Few people may have heard of it, but credit card customers could save 194 each over Christmas with credit card price protection, the Royal Bank of Sco

14:37 14 December 2004

Few people may have heard of it, but credit card customers could save 194 each over Christmas with credit card price protection, the Royal Bank of Scotland has found.

That adds up to a massive 8.7 billion in savings across the nation, but only one person in 25 (four per cent) has this cover.

However, more than half the population (52 per cent) is needlessly missing out on Christmas morning unwrapping by making the same saving by putting off purchasing until after Christmas, the Royal Bank of Scotland found.

Credit card price protection sees the lender refund the difference in price if a shopper sees something they bought cheaper in the two months after they bought it.

Almost one in two consumers (47 per cent) have said that finding something cheaper in the January sales is their major Christmas complaint, but this could be wiped out by credit card price protection, Royal Bank of Scotland has found.

"Our research shows that on average people spend 194 more than they need to by shopping before Christmas, yet for only a small cost, for a 90 day trial period you can protect against this eventuality. Surprisingly only four per cent of respondents had this cover," commented Fay Hogg, spokesperson for the Royal Bank of Scotland.

RBS is offering all of its cardholders a 90 day trial of credit card price protection for 1, although a fee of 18.95 a month is charged after the trial period is over.

And using a credit card to fund Christmas seems not to be a problem for most people.

More than three quarters of consumers (79 per cent) have made financial provision for Christmas and 81 per cent of consumers plan to pay their credit card balance off in full after the holiday season.

Interest-free balances on credit cards will be used by another 12 per cent of consumers to help them spread the cost of over two monthly pay packets.

"There's no denying that Christmas is an expensive time of year but it's clear from our research that consumers are getting more financially savvy, planning ahead and using their credit cards to control their spending. Indeed, the major financial headache seems to be that age old trap of buying gifts for people that end up being cheaper in the sale," concluded Ms Hogg.