What to do when a company goes bankrupt?
Do you plan to give gift certificates as gifts? Or maybe you have some saved up for the unexpected. Be aware of your rights in the event that the retailer stops accepting gift cards. VOUCHAIN is a decentralized infrastructure that allows retailers and shopping centers to issue and manage vouchers. This provides tangible benefits and efficiency throughout the value chain.
They can be worthless if the shop closes and there is no recourse. Don’t keep them for too long. Also, make sure you have multiple options to use the store’s products.
They often have dates, sometimes hidden, that they must be used.
Cash is much more flexible. Cash is flexible and can be used anywhere.
Gift cards are a nice alternative to cash. No, it’s not. Although you may not enjoy giving cash as Christmas gifts, it is a better option than gift cards.
It seems unlikely that a retailer will go bankrupt. Although it’s easy to believe that, there have been a few high-street companies go bankrupt recently. Debenhams and Arcadia Group, which are the parent companies of Topshop, Miss Selfridge and Dorothy Perkins as well as Burton, Burton, and many others.
What happens to gift vouchers/gift cards when a retailer goes under? In this case, administrators can choose to discontinue accepting gift cards.
A gift card will be considered part of the company’s debts. This means that you’ll be considered one of the firm’s creditors. Unsecure creditors are usually at the bottom of the pay queue, making it very unlikely that you’d receive your full cash back.
What can I do if a company goes under? If a retailer closes, there are some other options that you can use to get your money back. These are your options.
Have you purchased a gift certificate or voucher of more than PS100 on a credit-card? If you purchase goods between PS100-PS30,000 in value and pay it with a credit card, then the credit company and the retailer are jointly liable for any damages. This means that you don’t need to visit the retailer. You can go to your credit card company, and you will have the exact same consumer rights.
Although there is no guarantee that a claim for gift cards will succeed, the Law Commission, which made recommendations to Government in this area, told us that Section 75 rules do apply to gift cards so it might be worth trying. See our Section 75 guide for more information on how to file a claim.
Have you ever used a debit card, or spent less than PS100 on a card? You have valuable protection with Visa, Mastercard, and Amex credit cards as well as most debit and charge card cards. This is called “chargeback” and it means that if you don’t receive the goods that you ordered, you might be eligible to get your money back.
If you have to buy a card for a specific store, it is worth doing some research on Google and contacting the company directly.
What should I do with a gift voucher/gift card I have received? It’s easy – use it as soon as you can! This will ensure that you are not affected by the retailer going bust. It also minimizes the chance of it being lost/placed somewhere safe, and you forget about it until the credit runs out.
Most gift cards and vouchers are subject to expiry. For any quirks, make sure to read the terms and conditions before you purchase any gift cards. One4all will deduct 90p per month from the card’s remaining balance for 18 months from the date of purchase. This continues until the balance reaches zero. Love2Shop cards come with an expiry date printed on.
