Gift Card Resources

Why are major store chains allowed to refuse to honor gift cards when they are in trouble?

A major US retail chain is now refusing to honor gift cards when customers try to buy something in their stores. It's not like the customer is getting something for "free", the store already has the money of the person that bought the gift card. So why are they allowed to rip customers off like this?

Public Comments

1. The gift cards from major chain stores may expire at some point. It's all in the terms of the gift card, and it's legal. It's like free money for them.
2. I agree it is ridiculous. Basically the store see you prepaying for a gift card as a loan to them. Once they file for bankruptcy they get to wipe out loans that are given to them, including gift cards. It makes you not want to buy gift cards for anyone for sure.
3. If they have filed for bankruptcy, they have the right to do that. They have to provide a plan to the judge on how they are going to deal with the gift cards when they emerge from bankruptcy. In the meantime, you just have to wait. If they haven't filed for bankruptcy, there are state laws governing how these are handled. You might contact your local paper or TV station that has a reputation for pursuing consumer issues & see if they will shine some light on the culprits. It could cause them to decide to begin honoring the cards now, or at least sooner rather than later .