Comments on: Is Your Gift Card Worthless Because the Company Went Bankrupt?

By: Kris

Kris — Wed, 03 Dec 2008 22:22:45 +0000

The same thing happened to me, but I was the one who gave it out...to my boyfriends parents! Wow...last time I get a gift card for someone!

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By: The Simple Dollar » The Simple Dollar Weekly Roundup: Family Pictures Edition

Wed, 16 Jul 2008 14:01:28 +0000

[...] Is Your Gift Card Worthless Because the Company Went Bankrupt? This happened to me a while back, actually - no recourse at all. That’s why I think gift certificates to individual shops (non-chains) are a very risky proposition. (@ queercents) [...]

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By: Amanda Beals

Amanda Beals — Mon, 14 Jul 2008 19:09:14 +0000

Thanks for linking to our article, hope your readers enjoyed it! Best, Amanda/MainStreet.com

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By: GDad

GDad — Fri, 11 Jul 2008 21:04:53 +0000

Gift cards are just like giving cash, except not as good.

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By: Jamie

Jamie — Fri, 11 Jul 2008 10:16:13 +0000

Not nearly as bad as getting gift certificates which keep the change and expire in April. My grandma bought me a handful of gift certificates for a local Mexican fast food chain (my grandma apparently doesn't know me very well). It's bad enough that they made a point of telling me, every time I went in to use them, "You know you don't get change back, right?" I always wanted to say, "Yes, I know that you're stealing my poor grandma's money by keeping the change. Just because she paid $30 to you for my gift doesn't mean that I should get all that value to keep all for myself." But then Santa came in April (April!) to steal my Christmas! Were the dollars that my grandma spent at their business no longer valid? What really pisses me off is that my grandma basically made a non-tax-deductible donation to their company--out of the $30 she spent, they probably got to keep about $15.

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By: Mike

Mike — Thu, 10 Jul 2008 18:09:14 +0000

I don't understand why gift card holders are "at the back of the line". That "line" is for creditors, right? I always understood buying a gift card as the following transaction: Me: I'd like to buy someone a gift from your store, but I don't want to pick it out for them. Store: Buy a gift card instead. You can give our merchandise but let the recipient choose what it is! It seems that gift card holders are entitled to merchandise equal to the value of the card, regardless of the company's cash problems. The merchandise has already been paid for! If the gift card holders aren't receiving interest on the card value, and the gift cards are not redeemable for company stock, then how are they considered creditors?

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By: Chris

Chris — Thu, 10 Jul 2008 16:59:36 +0000

There was a lot in CNN about this actually, back in April, I think, when Sharper Image announced bankruptcy. I think maybe one safe/safer alternative is to get a “mall” gift card (really just a debit card with the mall’s name on it), or maybe an American Express gift card, provided you can snag one with no fees, no expiration, no self-depreciating balance, etc. These are hard to come by, but if you’re getting a huge gift card for someone, you might consider the option. One drawback is you can’t take it to a store and ask, “How much is left on this gift card?” You always have to call the number on the back or take it to a mall kiosk/service desk.

One time, last year, I had a friend who was getting really behind after her landlord raised the rent, and she was skimping on groceries and basic stuff, so I bought her a Mastercard gift card and told her she was allowed to use it for groceries only. She got some nice steaks and cereal out of it, at least.

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By: Nina

Nina — Thu, 10 Jul 2008 13:28:16 +0000

Paula: That's a bummer, but glad to hear it was only $25. By the way, in California, gift cards cannot contain an expiration date... bankruptcy though is one exception that would equally screw consumers here too. Thanks for the interesting post... I'm surprise there hasn't been more buzz in the media with all the big retailer bankruptcies.

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