Recouping Gift Card Losses

As the number of retailers offering gift cards increases, consumers are left wondering how safe these gift card purchases are. 

Retailers and restaurants are facing hard times in the economic recession and some have even shut their doors for good.

What recourse does a consumer have when a company goes out of business and they are holding a gift card to that establishment?  Should people be worried when they are initially looking to buy gift cards? 

Nils Frederiksen, spokesperson for the state Office of Attorney General offers a few suggestions.  If you’re holding a card to a chain restaurant, Frederiksen says it is wise to get in touch with the corporate office to determine if the card can be used at other locations.

Asking the company to refund your money is another possibility.  Though it may be a long shot, "It can't hurt to ask,” says Frederiksen.  Mr. Frederiksen also recommends contacting the Bureau of Consumer Protection, especially if the gift card or gift certificate was bought shortly before the company went out of business.

As with any purchase, it makes sense to educate yourself and to be a wise consumer.  Learning a bit about the terms of the gift card before purchasing and about return policies can pay big dividends in the future.