Gift card warning to consumers over Christmas

[Michael Browne]

Vouchers, or gift cards, can be a great idea at Christmas.

 

Give them to a teacher, a colleague, or a teenager perhaps, and you can show you have at least thought about them, without second-guessing their tastes.

 

But last year thousands of consumers were left out of pocket, when HMV, Blockbuster, Comet and Jessops all went out of business after the Christmas period.

 

Most vouchers were eventually honoured but only after a period of uncertainty.

 

In the case of Jessops, now under new management, some people were offered replacement gifts, but customers with vouchers worth, in total, more than half a million pounds never saw their money back.

 

The fact is, if you buy a gift card, there is no guarantee it will be honoured if the shop goes out of business.

 

 

Advice

So what should consumers do if they are considering buying gift cards or vouchers this Christmas?

 

First of all, they should watch their local high street carefully.

 

Blockbuster, the video chain, has already announced its intention to call in the administrators, for the second time.

 

"I'm really concerned that there's going to be something again this Christmas," says Deborah Harvey from Newport.

 

"And it's going to be too late for anyone to do anything about it," she warns.

 

The UK Gift Card and Voucher Association advises customers to think very carefully about where they buy vouchers from.

 

It says as long as you trust the retailer, you should trust their vouchers. But the reverse must be equally true.

 

If you wish to buy more than £100 of vouchers, make sure you buy them on a credit card.

 

But otherwise there are still no guarantees that your money will be safe.

 

http://www.bbc.co.uk/news/business-24868288