KEY POINTS:
A South Auckland budget adviser who has taken Chrisco to the Commerce Commission is encouraging his clients out of the Christmas club and into a savings alternative.
Darryl Evans, chief executive of Mangere Budgeting and Family Support Services, complained to the competition watchdog before Christmas that Chrisco came with hidden costs.
A Herald on Sunday investigation last month found that goods purchased in a Chrisco hamper cost 24 per cent to 38 per cent more than if they were bought in the supermarket.
Despite the appeal of a layby scheme which enabled customers to spread payment for Christmas goodies over the year, Evans said his clientele was not benefiting.
"Chrisco is targeting vulnerable families; rich people don't buy off Chrisco."
So his service has formed an alliance with Aotearoa Credit Union and is actively encouraging clients to pull out of Chrisco and similar schemes and join Aotearoa's Christmas Club.
It has transferred 35 families over.
One of those is a woman who spent $4900 with Chrisco last year - $95 a week. Evans said she was now happy to be contributing to the Aotearoa club.
The general manager of the South Auckland-based credit union, Bruce Bleakley, said Aotearoa's Christmas club paid 5 per cent interest and didn't charge fees.
"This Chrisco is a ruddy nightmare out this way," he said.
"It attracts the people who can't afford it, or they pay for Chrisco and they can't afford their other bills."
Evans said he was keen on the Aotearoa scheme because it taught clients good habits.
In a 2005 report on Christmas clubs, the Consumers' Institute said hamper schemes were an expensive way to buy groceries. It said supermarket Christmas club vouchers were a good deal, as they earned a discount of around 5 per cent when redeemed in December or January.
Evans said he had been approached by supermarket group Pak 'N Save about forming a Christmas club, but he would encourage clients into Aotearoa's club first because of the savings lesson it provided.
In response to the criticisms, Chrisco said it sold a wide variety of goods, including homewares and toys.
In many instances, it said, its prices were better than those offered by retailers.
The statement from its chief executive, Julia Dol, said Chrisco fixed its prices 15 months in advance, and absorbed any cost increases in the intervening period.
It said research indicated that its customers came from a wide socio-economic range.
