Financial Ombudsman Service shares a festive finance warning

• Consumers urged to take simple steps to avoid costly surprises this Christmas.
• We are sharing ways people can protect themselves on insurance, credit and scams.
• Stolen Christmas gifts, winter weather and home emergencies are just some of the reasons consumers bring their complaints to our service

From stolen presents and fake online deals to unexpected winter weather damage and disrupted festive travel, the holiday season can bring costly surprises if things go wrong.

Each year we hear from people who face substantial unexpected bills when something goes wrong over the holidays.

That’s why we are reminding people that a little preparation can go a long way.

To help people plan, the service – which received just over 200,000 new consumer cases between January and September 2025 – is offering a number of tips to protect Christmas finances.

Rachel Lam, Ombudsman Managing Director said:

Christmas should be an enjoyable time, but we know that when things go wrong it can place a real strain on people’s finances. As the festive season approaches, we’re reminding consumers to take a few straightforward steps – from checking insurance policies to staying alert to scams – that can help prevent unexpected costs.

If things do go wrong then it’s important that businesses are open and transparent with their customers, giving them the information and support they need.

If people feel they haven’t been treated fairly by their financial provider, they can bring their complaint to us for free, and we’ll see if we can help.”

Our five top tips to protect your festive finances

1. Check what your insurance really covers

Whether it’s new gifts in your home or the risk of burglary during the festive season, make sure your home contents and buildings insurance policies are up to date. Some policies have requirements around alarms, locks, time left unattended, or heating settings in cold weather.

2. Add new valuables to your policy

High-value presents such as jewellery or electronics may exceed single-item limits. Update your insurer with any new items, keep receipts, and don’t underestimate values to avoid being left out of pocket if something goes wrong.

3. Stay vigilant against festive scams

Delivery-fee scams and bargain priced deals and offers promoted on social media are common at Christmas. But watch out; if a deal seems too good to be true, it probably is. Never share personal information unnecessarily as fraudsters can steal identities and access bank accounts; and if you’re unfamiliar with a retailer, independently verify them before buying a gift.

4. Understand your rights when things go wrong with goods and services paid for using credit or debit

If things go wrong with goods or services (e.g. a product is faulty or not as described) purchased using credit like a fixed sum loan, credit card or certain catalogue shopping accounts, your bank or lender may be liable to help you with a refund, repair or replacement. You can ask it to consider a claim under Section 75 of the Consumer Credit Act 1974, provided certain conditions, such as price limits, are met. If Section 75 doesn't apply or you used a debit card, your bank may still assist through the chargeback scheme. If you are unhappy with how your claim has been handled, you can make a complaint to your bank or lender.

5. Review home emergency and travel cover

Cold weather can lead to burst pipes, boiler breakdowns, or other emergencies, but home emergency cover policies may have exclusions or maintenance requirements, so make sure you’re aware. And if travelling over Christmas, check your travel insurance covers cancellations, delays, medical needs, winter sports and any pre-existing health conditions. If in doubt about any aspects of your coverage, always speak to your provider.

Anonymised case studies, based on real life examples of where things have gone wrong, are available on request.