4 March 2008
Don’t Get Stuck with Worthless Gift Cards
Posted by Debo Hobo under: Consumer News; General; News .
You know that Sharper Image gift card you got for Christmas? Right now, it’s worthless. And other gift cards in your wallet could lose their value, too. As more retailers file for bankruptcy or go out of business, more than $75 million in gift cards are at risk of becoming worthless pieces of plastic this year.
Even if the retailer may want to honored the gift card in most cases they may not be able to because either they can’t afford it or their creditors’ committee or the bankruptcy court may not allow it. Gift cards amount to debt, and therefore holders are not necessarily going to get paid. Gift card holders fall in the class of unsecured creditors, which is ”low in the pecking order.
Experts say shoppers should never assume that if a retailer files for bankruptcy but remains in business, that their gift cards will be redeemable. Sharper Image, for example, plans to close 90 of its 184 stores soon after selling their inventory.
So look in your wallet and get out those gift cards and use them. Stimulate the economy and save yourself the frustration of losing out on a pre-paid shopping opportunity.
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I must agree with the statement to get out and use those gift cards. The people that purchased them for you as a gift gave you the free reign of deciding what you wanted to buy. To not use them is almost like you didn’t like what they got you anyway…
Gift card is out. Cash card is in! I hate receiving gift cards because I can only use it on a certain store. Never a big fan of gift cards. Gift card is not only inconvenient but worthless as more companies are filing bankruptcy.
I agree cash cards are so much better and versitile, but sometimes a gift card is nice as well. Expecially if it is for a store you that you yourself would not normally shop, it sort of forces you out of your comfort zone.
I hope you didn’t get stcuk with any of the Sharper Image ones.
Cash cards often subtract a fee per use to the user, it takes away from the useable balance. It takes some research to find the best alternatives if you don’t want to purchase a gift outright.
That is another great point, American Express is a good cash card option.
That’s a good reminder. When I get a gift card I use it a soon as possible. I put it in place in a prominent place in my wallet so I will not forget about it.
I’ll have to agree with MarketingDeviant. I haven’t given a gift card in a very long time. They started to lose their attractive convenient reputation awhile ago.
Cash cards are the way to go.
I couldn’t agree with you more about making sure we see if we have any worthless gift cards in our wallets or on our desks. I was one of the lucky individuals to receive 2 sharper image gift cards last Xmas and simply forgot about them until I stumbled upon your post today. With Starbucks closing 600 or so stores here in the US, perhaps I should see if I have any $$ left over and buy my coffee fast.
Cheers!