Simple Debt-Free Finance

A Simple Approach to Getting Out of Debt & Into Wealth

Sharper Image Illustrates a New Hazard with Gift Cards.

Posted on | August 12, 2008 |

Sharper Image Illustrates a New Hazard with Gift Cards

By now, you probably already know that many gift cards charge a fee against the unused balance if the card is not used by a year after purchase. But the recent bankrupting of Sharper Image shows a new peril with giving the gift of card.

Specifically, what happens to the card holder if the company files chapter 11?

According to the consumer reports blog :

“Some three weeks after the specialty retailer filed Chapter 11 bankruptcy on Feb. 19, owners of gift cards and merchandise certificates are facing confusing options about what to do with those obligations, which the retailer initially said it wouldn’t honor, at least for the time being.

On March 7, the U.S. Bankruptcy Court for the District of Delaware granted the retailer’s request to resume honoring its cards and certificates-but only for customers who make a purchase of at least twice the value of the card or certificate. So to use up a $50 gift card, a customer would have to buy at least $100 in merchandise.”

In short, a big legal mess has ensued. The cards are either no longer worth the plastic of which they’re made, or they are at least worth considerably less than face value.

This leaves card holders with 3 options:

  1. Bust out the scissors and practice a little gift card origami.
  2. Run, don’t walk, to your nearest branch of the store and buy what you can with what’s left of the card.
  3. Try to sell it at http://plasticjungle.com/, where people can buy, sell or trade gift cards.

Technorati Tags: ,

Bookmark and Share
Related Posts Related Websites
Category: spending
Tags: > >

Comments

Leave a Reply





  • Search

  • Get Updates

    Subscribe in NewsGator Online
    Add to Technorati Favorites

  • Recent Comments

  • Tags

  • Contact

    If comments aren't enough, feel free to contact me at:

  • Frugal Hackers badgeMoney Hackers Network
    RSSMountain On our way to 1,000,000 rss feeds - millionrss.com Blog directory
    Investing Blog Directory RSS Search Blogged.com hihera.com

  • Blog Catalog Visitors

  • Disclaimer

    The information and opinions provided on this site do not constitute professional advice. This blog is intended to provide general information only about the author's own personal financial journey. While all information shared here is believed to be accurate, the owner/operator of this website specifically disclaims all warranties expressed, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein. You are advised to discuss your specific requirements with an independent financial adviser. All posts are © 2008-2011, Simple Debt Free Finance.

  • Unique visits since 2008:

  • ss_blog_claim=f34d742cbb91cfd8bb6b4f0e010113be ss_blog_claim=f34d742cbb91cfd8bb6b4f0e010113be

  • Useful Links: