Retailers’ Savings Schemes – Treat Your Card Like Cash
Saturday 8 November 2008
The Consumer Council is warning consumers about the risks involved in many leading retailers’ savings schemes. These schemes allow people to buy £1 stamps on booklets or put money on a card which they can spend later in store . However in most cases, the stores don’t keep a record of what you have saved so if your card is lost, stolen or damaged you lose your money.
Despite drawing this risk to the attention of a range of stores – Asda, Dunnes Stores, Iceland, Sainsburys, SuperValue/Centra, Tesco and Woolworths, only SuperValu is prepared to take some action. They agreed to reprint their cards with a clear warning to treat your card like cash. These are tough times for households and whatever extra money people can manage to put away should be secure.
Retailers must step up to the plate and bring these savings schemes into the 21st Century. Many bury a warning of the risk of losing your card in the small print; others don’t mention it at all. At the very least, retailers must give consumers clear, upfront warnings on all savings cards, in store and on all advertising to tell them to treat their cards like cash.
Consumers are doing the right thing by saving for Christmas or a big purchase. Some retailers are allowing people to save in these schemes knowing that if the card is lost there is no record of their savings yet their loyalty cards use technology to keep full records of where we shop, when we shop and what our favourite brands are. Why don’t they use the same technology to record how much their customers have saved?
Retailers must do the right thing and do it now. The Consumer Council wants a complete overhaul of these schemes to offer full consumer protection against lost, damaged or stolen cards or booklets. They remain committed to working with retailers, business and Government to find solutions to ensure that whatever can be done to help consumers is being done.
