Shoppers should think twice before getting a loved one a gift card this Christmas. This is because research has found that they often go unused, and aren't protected should a company go into administration.
While they are a good option for people who are difficult to buy for, shoppers are warned that there is no automatic right to a refund. It comes as furniture retailer Made.com and fashion firm Joules both fell into administration. Previously, Topshop and Miss Selfridge only allowed customers to pay for 50 percent of their order using gift card credit, after they collapsed.
Last year, the consumer experts at Which? surveyed 2,000 people to find out the issues consumers have experienced with buying and spending gift cards in the last year. They found that an estimated two million people have unused gift cards lying around.
They also revealed that one in 10 gift card recipients in the last two years were given cards for retailers that went bust, and seven per cent received cards for a retailer who has collapsed since March 2020, reports Chronicle Live.
Lisa Webb, Which? consumer rights expert, said: "While often a popular choice for hard-to-please friends and family, Which? is advising consumers to think twice before buying gift cards this festive season.
"With the economic outlook uncertain, you could be left high and dry if the company goes bust. If you receive a gift card for Christmas, make sure to carefully check the small print to find the expiry date and make sure you won’t face any unexpected charges if you don’t spend your voucher quickly."
If you do want to try to get your money back, you’ll need to make a claim in writing to the administrators with proof of your vouchers. Occasionally, the administrators of a company in trouble will decide to honour gift vouchers and cards.
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