Purchase protection

Your credit card can provide protection

This Christmas credit and debit card spending will hit a record high according to the Credit Card Research Group.

It expects that we will put £20bn pounds on our plastic during December alone.

But card fraud is also on the increase - Home Office figures expect it to grow to £600m by 2005.

One proposed solution is PIN number based credit cards but what can you be thinking about to make sure your purchases are protected?

Don't panic

Although credit card fraud is rising, using plastic does give you more protection than cash.

If you are a victim but have paid by card the maximum you are liable for is £50.

And in fact almost every bank actually waives this if it is a genuine crime and you have informed them.

Protection

There are various ways that credit cards cover you.

Banks often don't penalise victims of card fraud

If you are spending more than £100 the Consumer Credit Act gives you protection if the company you have bought from goes bust.

Buying on a credit card can also entitle you to free insurance. If a product is lost or damaged, the card company may reimburse you.

It is also useful to find out if there is any difference in the rights of the primary card holder and the secondary.

These protection facilities show that if you're looking for a new credit card there is more than just the interest rate to consider.

Crime

It is also worth putting serious thought into protecting your purchases after you've bought them.

Crime goes up by about 10% around Christmas.

Your insurance company may in fact help you out if you do have goods stolen.

A number of insurers automatically increase the amount you are insured for by 10% in the month before and after Christmas.

Check your policy. If this is not the case speak to your policy provider and ask if this is something they would consider.

Common sense

Many crimes around Christmas are opportunistic.

Malcolm: don't leave presents in view

Malcolm Tarling from the Association of British Insurers (ABI) says you can help yourself:

"Don't leave Christmas presents in your car in full view of potential burglars, especially in car parks.

"Make sure when you're going out that your house is secure.

"And also Christmas presents look lovely when they are around by a tree that is fully lit but they also look very attractive to thiefs... make sure you draw curtains."