Beware of Expiring or Invalid Gift Cards!
December 5, 2008
Apparently there have been a swarm of e-mails going around warning everyone that, because of our poor economy, stores are closing and to be careful that some gift cards may not be honored through the holidays. I’m sure you’ve seen it at least once at this point. The e-mail goes on to list numerous stores that are closing up shop completely due to bankruptcy or are simply closing some of their stores.
According to About.com: Urban Legends, the “facts” circulating in these e-mails aren’t completely true.
While it’s true that many U.S. companies are feeling the effects of the economic downturn and some will no doubt close locations and/or file for bankruptcy in the coming months, most of the store closures listed above had either already taken place or were planned well before the 2008 financial crisis occurred.
Which means that in all but a few cases, fears that gift cards issued by these companies may suddenly become worthless are unwarranted or premature.
That having been said, financial experts do warn that it’s risky in general to put off redeeming gift cards in such volatile economic times.
They go on to give a lengthy list of stores detailed in the mass e-mail, and the “truth” about store closings, etc. For example, the e-mail states that Talbots – a popular women’s clothing store – is closing down all stores. In fact, Talbot’s closed approximately 100 stores in 2008 but is still in business and has no more store closings planned.
The e-mail also indicates that Lowe’s – the home improvement store – would close stores. In actuality, they have scaled back store openings but have not announced plans to close locations.
Store that are closing up shop for good, if they haven’t already,, and, of course, are not accepting gift cards, are Sharper Image, Levitz Furniture, Wickes Furniture, Linen’s ‘n Things, Circuit City (not closed yet, but closed 155 stores and filed for bankruptcy in November), and The Bombay Co.
That being said, if you are the owner of a gift card for one of the stores no longer in business, unfortunately that card is no good. However, if you have a gift card, or want to purchase a gift card, from one of the other companies mentioned who are still in business but have closed stores, they should still be valid (check expiration dates, if any, and all terms and conditions as they may vary).
You do have a very good option, however! If you like purchasing gift cards for holiday gifts like I do (hey, let the recipient buy what they want!), but don’t want to worry about the store going out of business and closing, I have a solution. Purchase a Visa Gift Card from MCCU! Your recipient can spend it anywhere they want! There is an 18-month expiration from the date your recipient activates the card, but that should be plenty of time for them to make a purchase. There is also a minimal fee for the card, but remember, you, and your recipient, won’t have to worry about the card not being honored. That’s worth a few bucks, right?
Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.
Posted in Alerts & Scams, Tips
