Apr 16
Or “Gift Card Madness Redux“. When I posted about gift cards in November, I warned how 27% (according to CNNMoney) of gift cards were never used, they were lost, forgotten, or put aside. Well, please allow me to add another warning; when a store for which you have a gift card files for bankruptcy, you may not be able to use the gift card, or at least not the way you supposed. It seems that bankruptcy law considers the money spent on those cards an asset of the company, not an obligation to the consumer. Consumer Reports published an on line article a month back, Sharper Image demonstrates perils of gift cards. As of this posting, Sharper Image will allow the use of a gift card if it’s used for half of a purchase AND it’s used in full. For me, I had received multiple certificates at corporate promotions. When the SI checkout person saw the certificates along with gift cards, he offered to combine them into one convenient card. $800 worth. So to spend this, I’d need to first find a $1600 or more item, and I’d need to pony up another $800. I think I’ll pass for now. Although that life sized Yoda would look great in my den.
If it wasn’t bad enough that you can easily misplace a gift card, or that there would be fees after months of inactivity, now you need to consider which companies may file for bankruptcy. Sounds like Linens and Things is already there and Circuit City may be next. When you see that rack of gift cards, you may just want to walk on by.
Joe
written by JOE
\\ tags: bankruptcy, circuit city, Finance, gift card, linens and things, money, sharper image
Nov 26
I’ve always found gift cards a bit odd. Don’t get me wrong, I like gifts and never turn them down. But it seems to me a gift card is the giver’s way of saying, “I wanted to give you a gift, but either don’t know what you want or am too lazy to go buy an actual gift.” Worse, there are amounts you may have a tough time spending in full, say $25 at Best Buy, where you’ll likely have to dip into your pocket to buy two CDs you may have found on sale elsewhere, or just bought the two good songs a la carte on iTunes. To make matters worse, the non-store specific cards carry an ‘activation fee’ that runs as high as $5.95, this for the honor or giving them your money.
Now, I run into an article on CNNMoney that confirms my other thoughts on this topic, 27 percent of recipients never use the card they got. Forget about the cards that have a monthly fee and eventual expiration, over 1/4 of the cards given get lost, forgotten, or just put aside as they are to a store that one doesn’t frequent. My 9 year old likes the gift card, it feels like a grown-up thing to use, like a credit card. But I can do without them altogether. You want to give me a gift but don’t know what to get me? Send a check to the New England Shelter For Homeless Vets in my honor. You’ll get a tax deduction and I’ll feel better knowing the money went to help those in need.
(1/2 update - There are Consumer Protection Laws which apply to gift cards and impact the fees charged as well as expiration times, these laws vary by state.)
JOE
written by JOE
\\ tags: charity, donation, Finance, gift card
