The panic comes from the danger that a company might declare Chapter 7 bankruptcy — which means they are being liquidated. Under Chapter 7 bankruptcy, there is a chance that a consumer holding a gift card can be considered an "unsecured creditor" — placing them nearly last on the list to get their money back.

The Sharper Image debacle alerted consumers to this possibility — and the after effects of this panic are still with us. Thankfully, retailers seem to have learned from this experience and many companies that are entering bankruptcy are taking steps to ensure that they are able to continue selling and redeeming gift cards.

Snopes gives a rundown of some current bankrupt companies and what they are doing in regards to gift cards.

So are gift cards safe? Well, they're exactly as safe as they always were — but it wouldn't be a bad idea to buy gift cards only from companies that are financially secure.

(Photo: The Joy Of The Mundane )

...it's up to the company to ask the bankruptcy court to allow it to continue accepting gift cards. If they don't ask, you're out of luck. So spend them quickly if you get them, and before you buy them, maybe check the financial pages to see if the company is headed for Chapter 11. Aha, you say, I'll just buy one of those ones backed by VISA or the like. Not so fast. If they're backed by a bank or credit card company, they can have all sorts of hidden fees and various ways for them to quietly depreciate in value.

The Gift Card Comes Wrapped in Growing Risk [NYT] (Photo: paper house)

Two come to mind: Brookstone and American Apparel.

Brookstone's return policy is simple:

If a product purchased at Brookstone does not meet your expectations, you may return it with receipt within 30 days of purchase for a refund, merchandise credit or exchange. We will not accept any returns without a receipt.

Sounds fair, until you consider that there aren't any provisions for gifts. Without the receipt, you're stuck holding a potentially unwanted gift. Even if you bring the unopened mint-condition item to the store, point to the exact same item on the shelf, and ask to perform an exchange, they will refuse. You have only one option: ask the gift-giver for the receipt, an obviously impossible request no half-decent person would make.

American Apparel can't even settle on a return policy. If you buy from their online store, they offer a full refund, but if you visit their brick and mortar locations, you can only receive store credit. So if you do your friend a favor and pick up a few shirts, and it turns out you were sold the wrong ones, you're entirely out of luck and stuck with an unwanted store credit.

Is either policy unique? No. We know there are companies with vastly more farcical policies we want to hear about them. Fill the comments with the worst return policies you've seen. And no, "all sales final" doesn't count.

EU to expand e-shoppers' rights [BBC]
(Photo: theogeo)

This past weekend, I went to Bloomingdales with a gift card that I received two years ago. The salesperson told me it had "expired." I was furious. How could a gift card "expire" after such a short time? How could they take "my" money?

I searched Bloomingdales.com, and learned that gift cards purchased after Feb. 2008 never expire.

That didn't comfort me. Then I sent an email to Customer Service. Lo and behold: they replied with a phone number to call to "restore" the balance in my expired card:

1-866-593-2540

A minute and one phone call later, I have the full $109 back on my card.

It's interesting how no one at the store was willing or able to give me this information — and how there's no directions about it on Bloomingdales.com.

Jacob says:

I signed up for FIOS in March and was promised a $200 Circuit City giftcard, and have been given the runaround for months now. I thought I was an isolated case, but when the rep last week told me the promotion had never existed, that was the last straw.

Jacob pointed us to a website filled with angry Verizon customers who haven't received their gift cards. Of course, this isn't the first time Verizon has failed to deliver on a FiOS promotion. Remember the disastrous "Free LCD" giveaway earlier this year?

If you believe that you were eligible for a free gift card from Verizon and have not received it, you should contact your state's attorney general and file a formal complaint. If enough customers do this, the AG will investigate.

When Seth emailed to ask why they were just now contacting him, he received this surprising response (emphasis ours):

A software glitch prevented Buy.com from billing some customers over the last couple of years. Buy.com is going to bill them soon. The only customers that were affected by this were those who used partial payment with a GC and then paid the balance with their Credit Cards (which were never really charged).

So there ya go: if you used a gift card at Buy.com in the "last couple of years" and settled the difference with a credit card, Buy.com may be hitting your account later this month in an attempt to finally get their books straight.

(Photo: Getty)

Here's their email:

We fixed the error on iPod pricing on our website this morning. And anyone who bought at the wrong price is going to be refunded without asking, no matter how long ago they purchased. Plus we are sending them a $10 gift card so they can add some tunes to their new iPod.

Thanks to your reader for pointing out the mistake. Apple changed prices and discontinued some models with their latest upgrades, and our system—for a reason we have fixed—didn't reflect that.

Inflated prices are not in our repertoire. Actually, getting gear in musicians' hands at the lowest possible price is what we are all about. We appreciate the fair shake we got from The Consumerist. Keep up the good work. No problem will ever appear on your site that we do anything other than solve

...bankruptcy courts treat gift cards as loans to the company, and the onus is on the merchant to petition the court to let it keep accepting them. If the merchant doesn't, then consumers have to file claims as an unsecured creditor in order to redeem the cards. "Gift cards shouldn't be the gift that stops giving when retailers go bankrupt," said Michelle Jun, CU senior attorney. "Unfortunately, there is no guarantee that consumers will be able to redeem the full value of their gift cards from struggling or bankrupt retailers."

Consumers urge FTC to protect gift card holders [BusinessWeek]
Gift Cards: The gift that can stop giving [Financial Privacy Now Blog] (Photo: paper house)

• Apple: Refurbished iPod touches on sale, 8GB for $180, 16GB for $240, 32GB for $320
• Amazon: Rewards points upgrade for existing Amazon.com Visa holders
• Apple: Free Select iTunes TV Shows in HD (requires iTunes 8

• Travelocity: United Airlines Sale: Round-trip flights from $108
• Amazon.com: Amazon.com Men's Watch Deals: Timex, Marc Ecko, more from $40 + free shipping
• Sears: Seven7 Women's Jeans for $18 + $6 s&h, more

• Budget Truck Rental: $50 Gift card when paying w/American Express
• Reverie: T-Shirt Sale: Buy 1 TEE get 1 free TEE
• BestBuy: Westinghouse 42" 1080p LCD HDTV and portable DVD Player for $749.99 + shipping

• Drugstore.com: New Customers: Save $5 or $10 off First Order
• Vann's: Panasonic FZ28 10.2MP Digital Camera $340 Shipped
• Amazon: Get Savings of up to 75% off Bargain Books

"If they thought I was a cranky old biddy, they should just have given me my money and let me go," Christina told the Star-Tribune. "I paid in good faith, and I wanted my money back. That's all. It's the principle."

"They can put you in jail for this," she says a cop told her. "Well, I've got nothing else to do today," she replied. "Besides, I may meet a better class of people in jail."

The store wouldn't budge. Christina wouldn't bend. A stretcher was brought in.

Christina was strapped to it, and taken by ambulance to North Memorial Medical Center. Her physical and mental health was supposed to be evaluated.

Attention shoppers: You won't take a gift certificate? You must be nuts.

"They thought I was loony or something," Christina says, her voice still incredulous. "That's the real crazy thing. I just wanted my money."

In the emergency room, they looked her over and sent her home that day. She seemed to be an elderly lady who was upset. From Christina's account, she also seemed to have a good reason.

Target's Fransen says store employees were concerned for her health.

"It's not anything she did," he said. "Team members were concerned about her well-being and her safety, and wanted to make sure she wasn't endangering herself."

Perhaps, so. But this could be one case where three $10 bills would have done a lot more — and done it more cheaply — than an ambulance ride to a hospital.

Christina Brown wants an apology, she wants her money (including getting her medical bills from the unexpected hospital trip paid), and she wants this: "I want the staff trained in how to treat customers."

Christina won't get to help train them. Target signed a trespassing order against her, meaning she will be arrested if she returns to the Plymouth SuperTarget.

That, friends, won't be a problem.

"I wouldn't go back to that store if everything in it was free," she says. "If they're waiting to see me again, they're waiting for a cold day in hell."

'Cranky' lady tangled with 'Mr. Nasty’ [Star-Tribune]
(Photo: spinadelic )

The Dallas Morning News also reports that Texasdelphia sandwich shop will be accepting the cards.

Of course, the few remaining Bennigan's may start accepting the cards again if it seems likely that they'll be reimbursed.

Do you know of any local places that will be accepting the cards? Tell us in the comments.

Rivals say they'll honor Bennigan's, Steak & Ale gift cards [Dallas Morning News](Thanks, Travis!)

I was wondering if you could give some advice or suggestions. My wife (Ashley) and I got married on April 19th. She had a bridal shower in the middle of March in Saratoga, New York (our Hometown). Like every other bridal shower in the history of modern America, she received 2 coffee grinders and 2 blenders. We did not have a registry but knew that they came from [Macy's]. We did not have gift receipts so we received store credit. They did their typical deal of taking Driver's License information and issued a easy exchange gift card. The only thing out of the ordinary was it took her a very long time to do the transaction. It was a card for about $120 when it was done.

Fast forward to this month. We went to use the card to get some sheets that were on sale but was told that the card was "invalid" at the register. Not zero balance but the actual card was invalid. She assured us that it was an easy fix and to call corporate. Between March and July we misplaced the register receipt from the return. Ashley called corporate that following workday and was told that the card was invalid that we could return to the store and register that the return was done and they could fix it even with out the receipt. We then called the Macy's store and a manager confirmed corporate's story about it being an easy fix.

On Sunday July 20th we went to Macy's. We went to the register and they employee was very nice and brought us over to the executive office where we met Nick and Rebecca (actual names). From the moment we were introduced they both were extremely rude.

We explained our situation to them and they once again confirmed that card was invalid and concluded that the card was improperly scanned when we made the return. They said that unless we knew the exact date that we returned the items it would be impossible for them to fix the problem. We said that we are not sure because it was 4 months ago but we knew which employee did the return. Nick said that it wouldn't matter because they don't save employee schedules and it is all online and they don't know them and without the date we were out of luck. I explained it was a weekday in late March and that is only 10 days to look at but he refused to listen.

Ashley asked why did they take all of our info when returned it and they said that the only person that has access to that is in some security office and that would be a dead end. Then we asked if they could do an item returned check since we remembered what they were. Nick said that unless we knew the exact color of the items to get the exact UPC numbers this would also be pointless. We went to look for the items only to find they were not longer stocked at the store. Nick once again said that since the items are no longer here we are once again out of luck and they had NO way to look up UPC numbers. A very helpful Wedding Registry Employee said that she could look up UPC numbers using the bridal registry. We found the coffee grinder and Rebecca called some office and was told that that model of grinder was never returned in March.

Nick told us in a very agitated manner that there was nothing else they could do and the ONLY way to fix it was to call my Aunt and get a copy of the purchase receipt and then maybe they could fix it. He said "make up a story" to why you needed it. We explained that that was mildly rude and they basically walked away from us.

My gut feeling was that the transaction was never completed properly when we returned the items. That is why the card was invalid and the UPC search came up empty. If that is the case no amount of searching will find the transaction. We are not even overly concerned about the money as it was only 120$ and a gift. We were much more upset and shocked about the way Nick and Rebecca treated us. They were very rude and condescending the whole time and frequently change their story as to what they were able to do and were caught in several lies and had to backpedal. They never once apologized for the situation or tried to fix the problem without us prompting them on suggestions. I wanted to email someone in Macy's corporate but I was unable to find an email outside of the standard "Contact Us" on the website. We also looked over your website but came up empty handed. Any direction would be great.

We'd love to help you launch an EECB about this issue, but, sadly, we don't have much in the way of Macy's executive customer service info. Of course, you can always follow the instructions located here. We're pretty sure their emaill address format is firstname.lastname@macys.com.

Anyone got better info to share? tips@consumerist.com

(Photo: smcgee )

We're also glad this was resolved in the customer's favor, which will probably annoy many of you who disagreed with or attacked Cliff in the original post. Here's why: Best Buy only honors price matches on in-stock items at competiting stores. Although it's quite possible that Wal-Mart was already out of stock by the time Cliff made it to the register, the manager never gave this as the reason for the denial, according to Cliff's story. The first time anyone at Best Buy brought up the in-stock condition was when a CSR said it to Cliff the next day over the phone. Since the manager made a distinction between the bundled PS3 and "any other PlayStation" but never mentioned stock being an issue, it's far more likely that he denied the gift card to Cliff for some other reason—confusion over the memo, perhaps, or a desire to protect his store sales on the day the Metal Gear Solid bundle was released.

According to Cliff, Best Buy reiterated its in-stock rule but indicated they would make an exception of sorts:

I received a call from someone at Best Buy this morning who had been made aware of the situation by Lisa Smith (Vice President Customer Care). She explained what she understood of the situation and pointed out that the company policy regarding price matches is that the item must be in stock at a competitors store.

However because of the situation and that I was a valued customer, they are going to send out a $100 gift card. I'm hoping to see it in the next 2-3 weeks!

I can't count how many times a day I refresh The Consumerist, but I'm certainly glad I've been reading it. If it weren't for your tips like escalation and knowing about the executive email carpet bomb, I would've walked away from a corporate authorized price match. Thanks for everything and keep up the amazing work!

We think they should have just left it at "because of the situation," because no matter who you are as a customer, in this case the store manager made a mistake.

Enjoy your gift card, Cliff!

RELATED
"Best Buy Ignores Internal Memo, Doesn't Honor $100 Gift Card Promo On Metal Gear Solid Bundle"

Hi Cliff, My name is Lisa Smith and I am responsible for Customer Care at Best Buy. I want to apologize to you for what happened in our Pasadena store on Thursday; I completely understand why that was a perplexing a frustrating situation. You had “done your homework” and chosen to give us your business and we disappointed you. I certainly appreciate the efforts you made and also appreciate you taking the time to let us know what happened. Someone from my team will be in touch with you on Monday in effort to make things right. Best Regards, Lisa Smith

Hey Cliff! Let us know what happens.

Update: Best Buy's VP of Executive Customer Care has emailed Cliff saying someone will follow up with him on Monday. What will happen? We hope Cliff lets us know...

Update 2: Best Buy has contacted Cliff! Find out what they said.

When he called customer service to complain, he was told that the bundle was pulled from the offer because Wal-Mart was out of stock, and they only match stocked merchandise. However, Cliff was 7th in line to buy the bundle the day it went on sale, and he was given the out-of-stock reason the next day by a distant CSR, not the store manager. The store manager never mentioned it as a reason to refuse the sale in the first place.

Here's Cliff's story. It's a long one, but we figured you'd want all the details unedited:

This is in regards to my recent experience at the Best Buy store in Pasadena, CA (Store 125).

On Thursday, June 12th, I went to the Best Buy in Pasadena, CA with the intent to purchase the Metal Gear Solid Playstation 3 Bundle and a 40" Samsung LCD TV. I arrived about an hour and 45 minutes before store opening and found myself 7th in line to purchase the Metal Gear Solid Playstation 3 Bundle.

At 10:00 am, a gentleman in a white button shirt, black slack, and walkie talkie came out and proceeded to give everyone in line instruction on how they would be handling the distribution of the Metal Gear Solid Playstation 3 Bundle. I was pleased to see that they were handing out numbered tickets and letting people in groups of 5 to enter, as not to create a rush for the systems.

Upon checkout I presented the Sales Associate with an ad I had found online from Wal-Mart. This ad (see attached) states that, "You'll get a $100 Wal-Mart Gift Card when you buy any Blu-ray player." From what I understand from websites such as slickdeals.net, Best Buy corporate had sent out a memo stating that they would honor the price match.

The Sales Associate reviewed the ad and stated that they could not price match the Playstation 3. I made mention of the corporate memo and asked for a supervisor. One was called over who also reviewed the ad, again she stated that they were not honoring the ad because it had expired. I explained to her that it was a new ad again made mention of the memo. She proceeded to radio her manager to find out details on it. It was at this point that I saw the gentleman who was handing out the numbered tickets responding to her questions. I now assumed him to be the store manager.

The store manager stated to me that they were not honoring the Wal-Mart ad. Once again I mentioned the memo, and he said to me, "You can buy any other Playstation and you can get the gift card, but not on that one." I pointed out that it was for any Blu-ray player and he just repeated himself. In frustration I gave up but went ahead and purchased it since I had already waited so long.

I decided to try Wal-Mart but unfortunately by the time I had gotten there they were already out of them. Despite all of this I returned to the Pasadena store and purchased a 40" Samsung LCD TV.

Imagine my frustration when I returned home to later find that people were successful in getting Best Buy to honor the price match, one that had already been authorized by corporate. I had just spent a total of $1,904.35 at a Best Buy store that denied me a price match that was authorized by corporate.

Today I called customer service to resolve the issue, but found that they were equally unhelpful. I first spoke to Cicero and was suddenly disconnected after explaining my situation. As a side note, I don't really understand what the purpose of asking for my phone number is if the CSR doesn't call back when you're cut off.

I called again and waited on hold to speak with Vanessa, who confirmed to me that corporate had issued a memo, but a possible reason I was denied was because Wal-Mart was sold out of the system. I later spoke to her supervisor, Daniel, who explained the same. His only reasoning was that Wal-Mart had sold out, however this was not the explaination I received from the Pasadena store manager.

I am extremely frustrated and disappointed with this whole situation. I chose to go to Best Buy over Wal-Mart and Circuit City because it my first choice when buying electronics. I expected Best Buy to honor the Wal-Mart ad as instructed by corporate, however I was first told that the Metal Gear Solid Playstation 3 was excluded from the offer. I was later told that it was because Wal-Mart had sold out, and it was against policy to price match unless it is in stock. This is the most frustrating part of it all because had the store manager explained that to me from the beginning I might have accepted it. They never offered to check the other stores stock, and when they did it was already a day later.

I find it unacceptable that Best Buy would send out a memo and allow a store and customer service to ignore it. The success people have had in price matching further adds to my frustration. While I do not have "Reward Zone Program Premier Silver" status, I wonder how you would feel had a "Premier Silver" member been treated this way.

It sounds like the Best Buy manager was protecting his numbers on the bundle, and that Best Buy is trying to close off the conversation by using the out-of-stock argument after the fact.

Skipping past the fact that gift cards are a terrible investment and that you could easily take your $50 straight to Target, why would anyone bid more than face value on gift card?!

Steven Levitt is baffled:

This seems to defy all logic. The item description is: “Just a $50 gift card to Target … .”

We need to find lpinok and sit him down with Ben Bernanke. Maybe, hopefully, hours of conversation will unearth the mangled thought process behind baffling phenomena like the subprime meltdown.

Until someone offers an explanation, we have no choice but to believe that lpinok represents everything that is wrong with personal finance in America.

How Much Would You Pay for a $50 Target Gift Card? [Freakonomics]

From The Buffalo News:

“She looked at my money and said, ‘We don’t accept cash as a form of payment for the iPhone.’ When I asked why, she would only say it was the store’s policy that I use a credit card,” Palen said.

Since he doesn’t have one, Palen asked another customer if he could give him the $499 plus tax to charge it for him. Store staffers said that was against the rules, and then escorted him — and his pocket full of bills — from the store.

“I was so outraged. I was so humiliated. I just sat in the mall and couldn’t even talk for half an hour. I was so surprised this could happen in America,” Palen said. “I’ve never been told that U. S. currency isn’t enough to buy a product.”

Legally, neither Apple nor any other private company in New York State is required to accept cash.

Apple responded to the news story with the following: "“We require a credit, debit or gift card as payment to discourage unauthorized resellers,” said Teresa Brewer, Apple spokeswoman." We wonder if they couldn't have asked him to buy a gift card rather than resorting to tossing him out of the store? Oddly, Alex says the experience hasn't dampened his enthusiasm for Apple... "I still want to buy the iPhone,” he said. “Unfortunately, it’s the best phone on the market. Nothing else compares.”

What can cash buy? Not an iPhone [Buffalo News](Thanks, Craig!)
(Photo: hanapbuhay )

I am a faithful - *religiously* devoted - reader of your blog (but not in a creepy way), and a huge supporter of your customer-focused stance. I've emailed your articles to friends, family members and strangers.

Unfortunately, I'm writing you today with my own customer service nightmare. I'd like to call it: (cue ominous music)

DELL MAKES PROMISES IT CAN'T KEEP, CHEATS CUSTOMER OUT OF $70, CHASES SAID CUSTOMER INTO THE ARMS OF STEVE JOBS

(Okay, that's not very punchy... but Dell cheated me out of 70 bucks, and I'm too mad to make a snappy title)

So here's the SHORT VERSION:

I'm a Mac and PC user, and recently had to buy a new computer. Solely based on price, I decided to buy a Dell on 01/31/08 - it was on sale, and they had a nifty promotion for a $70 gift card to be mailed to you with your purchase. (I think you can guess what the problem is going to be...)

It's been 3 and a half months, and I NEVER GOT that $70 gift card. I called their customer service three times:

#1 03/30/08: Spoke to a supervisor, who asked me to PROVE THAT I QUALIFIED for the gift card. I forwarded him my confirmation email (with the gift card listed in the order), and he said he'd have a supervisor call me back, no one called me back

#2 around 04/15/08: Spoke to "Anne" who said she'd have a supervisor call me back, hung up on me, no one called me back

#3 05/05/08: Spoke to nameless CSR who said that all the $70 gift cards were all sent out and if I hadn't received one - TOO BAD - they were all out. Nothing she could do. I asked to speak to a supervisor, she refused to connect me, said he'd call me back, no one called me back

During the three calls, the CSRs were rude, obstinate, uninformed and, of course, unhelpful. Can I mention again that each time a CSR promised that someone would call me back, and I have yet to receive a phone call from anyone at Dell?

So... Now I'm at the point where I am being a good Consumerist reader and sending Dell an EECB. And I want to share my story with you - considering, also, that I must not be the only one Dell cheated out of the promotion. I mean, we all know how horrible their customer service is - but I didn't know that they blatantly lied to their customers to boot. BUY A MAC!

Julia wrote back today to tell us that her EECB has been ignored and she's heard nothing back from Dell. Is she the only one who is having this problem?

Any advice for Julia? She could report Dell to her state's attorney general for not living up to their advertised agreement. What do you think?

(Photo: Ben Popken )

UPDATE:

I have an update on my case - Dell will be issuing me a credit of $70 back to my credit card. (!)

I actually had two interactions with Dell, seemingly unrelated:

Geoff [Ed.— He's a helpful Dell guy who reads the blog.] got back to me, and told me he would be taking care of my issue

Before he could do that, a woman named Anne called me me from their "Customer Resolutions Center". She was the one who promised me that she would be crediting my acct., and that she will follow up Mon. or Tues. It seems that she was following up on my EECB, as she and Geoff did not know anything about each other.

Anyway... Yay for Consumerist and the mighty EECB!

The EECB is magical, is it not?

From their press release:

"Grocery bills represent a significant expenditure for the average American family. In fact, the average family of four spends between $105 and $235 per week* on food purchased at a store and prepared at home," said David B. Dillon, Kroger chairman and chief executive officer. "Kroger's program allows our customers to stretch their grocery dollars further. We are excited about the opportunity to touch the lives of millions of families across the country by helping them extend their household budgets through this special program."

Customers can present their checks at a cash register at Sears and Kmart to convert it into a gift card at the full value of the check, and to receive a bonus gift card worth 10% of the check.

The cards can be redeemed at any Sears, Kmart or Lands' End retail stores, as well as sears.com and landsend.com, Hoffman Estates, Ill.-based Sears (SHLD, Fortune 500) said.

The promotion is scheduled to last between May 14 and July 19. The gift cards have no expiration and no fees.

Sears representative Kirsten Whipple said details for shoppers who elect to receive the fiscal-stimulus check by direct deposit are still being worked out, but they will likely be able to register online to receive a coupon to bring to stores.

Sears offers bonus to stimulus check shoppers [CNNMoney]
(Photo:OctopusHat)

Since last fall, eight mostly midsize chains — as diverse as the furniture store Levitz and the electronics seller Sharper Image — have filed for bankruptcy protection as they staggered under mounting debt and declining sales.

But the troubles are quickly spreading to bigger national companies, like Linens 'n Things, the bedding and furniture retailer with 500 stores in 47 states. It may file for bankruptcy as early as this week, according to people briefed on the matter.

Even retailers that can avoid bankruptcy are shutting down stores to preserve cash through what could be a long economic downturn. Over the next year, Foot Locker said it would close 140 stores, Ann Taylor will start to shutter 117, and the jeweler Zales will close 100.

The surging cost of necessities has led to a national belt-tightening among consumers. Figures released on Monday showed that spending on food and gasoline is crowding out other purchases, leaving people with less to spend on furniture, clothing and electronics. Consequently, chains specializing in those goods are proving vulnerable.

Because retailers rely on a broad network of suppliers, their bankruptcies are rippling across the economy. The cash-short chains are leaving behind tens of millions of dollars in unpaid bills to shipping companies, furniture manufacturers, mall owners and advertising agencies. Many are unlikely to be paid in full, spreading the economic pain.

Retailing Chains Caught in a Wave of Bankruptcies [NYT] (Thanks, Stephanie!)
(Photo:hive)

Rhys says:

At 5-30pm today I received a phonecall from Apple. They'd done some detective work to find my phone number that sounded quite complicated and involved tracing everybody with my forename that they'd dealt with over the last few days and finally tracing me through my blog. Not quite sure how they traced from my blog to my business website (www.sagephotoworld.com) to find my business phone number but there we are.

I understood from my conversation that Apple is working on its online system in order to make it accept more than 4 gift cards. I also understand that they're going to have a word with their sales team. Apparently the use of more gift cards is unusual and requires more manual labour to get it right. It did take a while to get the numbers read out and checked. I was asked who I'd dealt with but I could only remember the name from the online chat - not from the time when I rang.

There was a lot more in the calls during which a brand new $1299 Macbook was ordered with some extras. Thus far we seem to have come to an amicable settlement. The chap at Apple appologised profusely and offered a free iPod Nano as compensation. Quite honestly I'd rather a copy of Aperture but he said he'll ring and we'll chat about it tomorrow.

And it's all because Apple executives read consumerist.com. :)

Rhys

(Photo:ShellyPanzarella)

Can I use multiple gift cards when making a purchase?
Yes. You can use up to six cards when making a purchase at a retail Apple Store and up to four cards at the online Apple Store

I have exactly the same problem.

I have 7 gift cards totaling $1250. Apple refuses to sell me a computer despite having $1250 upfront.

As soon as I found I could not enter more than half my gift cards on the Apple website, I used their online chat facility. That didn't work out so I rang Apple and was passed from Sales to Customer Service and told "no" all the way. I have filed a complaint against them with the Better Business Bureau.

Right now I'm more interested in getting money back on my gift cards than in ever getting an Apple computer, given the stupid nonsense they've been giving me. I understand that New York law treats gift cards like cash and states that a refund must be given for them so I might follow that route. Having said that, my next most immediate thing is to look into SC law.

We guess that solution was just to stop all the negative PR.

What a shame! Apple has $1250 of Rhys' money and Rhys has no computer.

Here's some Apple people Rhys can send a complaint to:

abarney@apple.com
katiec@apple.com
dowling@apple.com
lfox@apple.com
anuj@apple.com

In addition, he could call Diana at (408 974 6401) or Sam Spoor at 800-676-2775 ext. 46447.

If you have a small amount of money on a Sharper Image card and don't want to buy something twice the value in order to use it at the bankrupt retailer, you can surrender it to Brookstone for 25% off.

Currently, Sharper Image does accept gift cards, but they must be used in full in one transaction and the transaction must be for twice the amount of the gift card's value.

Brookstone Press Release [Brookstone] (Thanks, Richard!)

The retailer said in a statement that it will take the cards only if the full amount is used in a single transaction and if the customer is purchasing items that are twice as much as the card's value.

The program is voluntary, and the retailer said that they may be able to resume normal gift card redemption in the future.

"While not a complete solution, it does provide immediate satisfaction to customers on a voluntary basis," said Robert Conway, company chief executive.

As we previously reported, when a retailer enters Chapter 11 bankruptcy gift card holders are considered unsecured creditors and are fairly low on the pecking order when it comes to getting their money.

In other Sharper Image news, the retailer is asking the courts for permission to hire an outside liquidator to conduct the closing of half of their retail stores.

"A liquidator will ensure "the most feasible, economical and efficient means of achieving the disposition of the merchandise" at its stores, Sharper Image said.

Sharper Image to redeem gift cards [BusinessWeek] (Thanks, Robin B!)
Sharper Image Asks to Hire Liquidator [Houston Chronicle]

Cash gifts are the best - On every new year or birthday, Chinese children usually get cash gifts that they end up saving. This sounds pretty sad, but I remember being quite excited about visiting all the relatives and receiving red envelopes with cash in them. Red envelopes are the standard gift for any celebration, and they are considered the best gifts because the recipient can do anything with the money. In America it seems that cash is a less common gift because it is considered to be less thoughtful. Instead, cash is converted to gift cards or useless trinkets that are probably less appreciated by the recipient.

Cash is a thoughtful gift! Bring on the red envelopes. I think people should start giving each other rolls of quarters. You can do your laundry or punch an attacker. Your choice.

Chinese Money Habits - How My Culture Influences My Attitudes Toward Money [Wise Bread]
(Photo:Fast Fords)

I saw your post on Sports Authority and I was intrigued... I am a former Sports Authority manager, and I wanted to share some secrets with you.

9) The store has a comment line run by some third party company (an 800 number.) But if you want to get to someone in the company, call (303) 200-5050 and ask the switchboard for INTERNAL customer service. They may want to transfer you to the 800 number, but tell them you want to talk to the corporate customer service. Usually when a problem gets reported to the corporate office instead of the comment line, it will get resolved quickly - usually within an hour. The corporate office figures everything out, and will talk to the store and issue a resolution.

8) So you're having trouble with your store manager and want to escalate your problem to the district manager. They may not want to give you the DM's number, but all district managers have their offices in a store in their district. Ask the manager which store the DM has his/her office in, and call that store.

7) They ask for phone numbers at POS. The under-trained cashiers say it's to figure out where to build stores or how to allocate inventory. WRONG. It's to add you to our mailing list/robo-call list.

6) Still have money on that gift card you got? As long as it's under $10, you can "Tender Exchange" it.

5) The brands mentioned as exclusions on the coupon almost always have a 50-100% markup. In fact, Under Armour is essentially over-priced brand name clothing. A $24.99 pair of shorts costs $12.00.

4) There is no reason to exclude the brands that are excluded, except for maybe manufacturer agreements. I know that Under Armour wouldn't let Sports Authority advertise a discount on their product because they wanted their product to have the same price across the board.

3) The coupons are always a sham. There is always a series of exclusions (the brands people want, such as Under Armour, high-end Nike product, high-end ski and snowboard equipment, etc).Complain to a manager, and they'll usually take the discount.

2) The Sports Authority website is not run by Sports Authority. It is instead run my GSI Commerce. The same company also runs the website for Dick's Sporting Goods. Because of this, returns are not accepted at Sports Authority locations, and the inventory on the Sports Authority website will always differ.

1) The fine text (Any illegal posting of this promotional code will result in immediate disaffiliation. This promotional offer may be modified or terminated at any time without notice.) was posted because what happened in the past was that the employee discount code was posted on Fat Wallet, so they did this so they can cancel coupon codes if they get used too much. How much is too much, is what I'm not certain about.

Now for EECB info:

Phone: (303) 200-5050 - Main Switchboard

CEO: John Doug Morton - dmorton@thesportsauthority.com
CFO: Greg Waters - gwaters@thesportsauthority.com
Operations/Customer Service VP: Tom McVey tmcvey@thesportsauthority.com or Cleo Frye cfrye@sportsauthority.com
Customer Service Supervisor: Noela Jordon njordan@thesportsauthority.com

(Photo: Getty)

After receiving several complaints that gift certificates were not being honored by the store the Consumerist was able to confirm via email with the Sharper Image's corporate sales staff that the retailer is no longer selling or accepting the cards.

Reader Javier is stuck with a $279 store credit from a defective Roomba:

I called customer service and they sent me a Merchandise Certificate for $279 dollars. They couldn't send me a new Roomba because they don't consider it the same product since its a new version. During the holidays, no store in the Chicago area had the Roomba in stock, so I was left out in the cold again for 2 more months. Now, I finally go to the store and hand them my certificate and I'm told that due to Chapter 11, SI is not accepting Merchandise Certificates or Gift Cards from anyone.

Reader Jonathan's boss is stuck with a credit card rewards gift card from Mastercard:

The card was a reward gift from Mastercard. My boss used the gift card ($500.00 total) to purchase some speakers. Today he went online to purchase a digital camera with the remainder (over $250.00) and the card would not process. He called Sharper Image customer service see what the problem was and the representative told him they had suspended gift card redemptions due to the bankruptcy.

According to the California Department of Consumer Affairs legal guide on gift certificates, the holders of cards may have a claim against the bankruptcy estate of a retailer that files Chapter 11. If the court has prohibited The Sharper Image from redeeming gift certificates, you are considered a creditor in the case, says the CDCA.

You may be entitled to file a claim, but as an "unsecured creditor" you're pretty far down in the pecking order and aren't very likely to get anything.

"Consumers should weigh the potential benefits of a successful or partially successful claim, against the inconvenience and expense of pursuing the claim, Even a successful claim will take time. Bankruptcies in which there are assets can take up to a year or more before creditors are paid. In many cases, there are no assets.

Your prospects for receiving your money are better if the a store chooses to file Chapter 11 bankruptcy [ed. — like Sharper Image.] This means the store intends to reorganize, emerge from bankruptcy and continue doing business. But many retail stores fail to achieve that goal. Most Chapter 11 bankruptcies eventually end up in Chapter 7 bankruptcy, which involves liquidation of all assets and going out of business for good.

Consumer Tips on Retail Bankruptcies (PDF) [California Department of Consumer Affairs]

First off, I love the site, although I'd probably do better in school if it didn't exist.

On Monday, I ordered a dvd and a few cds from Barnes and Noble. I paid with 4 gift cards and about $25 of my own money. Tuesday morning, I checked my order status and found that one of the cards had disappeared, and my credit card had been charged an extra $25. I sent a complaint through their customer service form and got this reply on Wednesday morning:

Dear Augie _____, Thank you for your inquiry regarding order #********. After review of your order we can confirm that the gift card ending with **** was used on this order. The balance should still be available on the gift card. Visit www.bn.com and click on the options that appear in the upper right-hand corner to view information about your order. We look forward to your next visit. Sincerely, Amy Customer Service Representative BarnesandNoble.com http://www.bn.com/

This made absolutely no sense to me, so I replied with this:

I'm confused. As of 2:00pm my order details have not changed, my credit card is still being charged an extra $25, and the gift card in question still has $25 dollars on it. If you can confirm that it was used, why is it still being ignored?

Thursday morning, I received this:

Dear Augie _____, Thank you for contacting BarnesandNoble.com. We received your e-mail requesting a change in your payment method. Please note that your order has already been shipped and payment has been processed using the existing chosen method. Unfortunately the gift card ending in **** was not applied on this order due to some error in the system. We are unable to make a change to the payment method once the order has shipped. We regret any inconvenience this may have caused. Visit www.bn.com and click on the options that appear in the upper right-hand corner to view information about your order. We look forward to your next visit. Sincerely, Roopa Customer Service Representative BarnesandNoble.com http://www.bn.com/

Here's my reply:

I'm sorry, but I can't accept that. I am not requesting a change in my payment method. I am requesting the payment method that I chose when I paid, and that I was told had been accepted. I did not originally intend to spend more than what I had in gift cards. I made a choice to spend $25 of my own money, but is completely unacceptable for you to spend another $25 for me.

A few minutes later, I decided to see if I could scare them. So I sent them an email informing them that I would be sending all of our correspondences to Consumerist, which I am now doing.

I'm left wondering if there are any legal issues with them changing the payment method without my authorization. If there aren't, is there any way for me to get my money back?

Another thing that bugs me is how each time I sent an email, they waited until the next morning to reply. They say that they can't make any changes once the order has been shipped, but if they had simply fixed the error when they first heard from me (or would it be too much to ask to fix it on their own when it occurred?) that wouldn't have been a problem.

(Photo: grilled cheese)

"The customers came in and evidently he took down their credit card number and expiration date," said Jim McDonald, manager of the gas station. "He was working with another employee. When the other employee left at 9 p.m. he bought himself three prepaid debit cards and since he had the credit card number and expiration date, he could manually enter it."

McDonald said Saumur bought one $100 card, and two $50 cards.

"Gas Attendant Accused Of ID Theft" [MSNBC]
(Photo: Getty)

Crackpot owner Neil Smith told 11 News that his bank took over the place, locking all of his assets.

Smith said he's looking into filing for personal bankruptcy because the Bel Air restaurant has all but sent him into financial ruin. He insisted that he and his shareholders did all they could to keep the location open.

Smith also said he's in the process of sending paperwork to the bank to try to help his employees, but didn't give 11 News an answer about the gift cards.

(Thanks to S.F.!)

"Closed Restaurant Leaves Customers Without Refunds" [MSNBC]

Dear Sur La Table Customer Service Management,

Hello, my name is Rachel. I am a student in my mid twenties from Cleveland, Ohio, and I would very much like to give feedback on my Sur La Table online shopping experience.

First of all, I want to say that I am not a regular shopper at your store. Quite frankly, as a lower-class college student who works part time as an accountant and office manager at a non-profit and lives on a very low-budget- nearly fixed income, it would be rare for me to be able to afford the gorgeous items that your store offers. I usually walk into your store and spend nearly an hour gazing at (and drooling over) the luscious array of cookware and bake ware, consciously taking note of items I can ask my parents for on the occasion that I receive Christmas or birthday gifts.

Keeping this in mind, you can imagine how excited I was to receive a $100 Sur La Table gift certificate for Christmas. In fact, I came home Christmas night and spent at least two hours picking out exactly what I wanted, and even allowing myself to spend almost all of the money I received for Christmas on the remainder of my order. I felt guilty for doing so, but was entranced by the variety of fabulous options I had. I was sooo excited to receive my order.

I was extra excited when one of the ten items I had ordered arrived just two days later! I figured since your company boasts to have such immaculate customer service, that you may have sent items as soon as they became available so your customers would receive them faster. Excellent! However, the next day (12/29), I go to buy groceries with my bank card, only to find that I would be overdrawn if I did so. How could this be? The math just didn't add up.

Lo and behold, your company with immaculate customer service charged $165.15 to my bank account. Funny, as I had placed my order using a $100 gift certificate, and knew that I should only be charged around $65 for my order. I called your call center the next day, and was told that it was an error on your behalf, and a check would be issued to me shortly. I asked why the money couldn't just be placed back onto my credit card. I was told that the accounting for gift cards was different, so this was not a possibility. As an accountant myself, I understood and sympathized with your situation, said that I'd hope the check would be sent out within a few days. I was assured it would be. I was also told that my order had been sent days ago, and should arrive the next day, if it didn't come later that same day.

A week later, when zero out of my nine other items arrived, as well as no refund check in sight, I started to worry. I sent a query electronically through your website, and two days later, there was still no reply. I decided I would call your phone center, yet again. This time, I was told that it was, in deed, an accident on your behalf once again, and somehow, only one of my items got shipped. I was told that you were indeed, very, very sorry, and that my items would be sent expeditiously. I suggested that overnight shipping would be a good idea, and the customer service rep said that she would "rush" my order. I again inquired about the refund check and was told that it was "in processing" and would get to me in a few days.

Well guess what I did get a few days later (1/15/08)? My check? NO. My 9 MIA items? NO. I got another charge to my bank account for $31.89. What the hell was this charge for? I still hadn't received my items, nor did I order any more items, so basically I knew I was paying for a third customer service blunder. Now I was in the hole to the tune of $200 for an order that was supposed to cost me $65.

Now maybe this kind of shit isn't a big deal to your regulars- people who have disposable income to blow on $800 espresso machines and tea that costs $25 per box, but it's a big deal to me, a woman who can't even afford a daily coffee from Starbucks and keeps a box of Celestial Seasonings bags in her desk that she purchased from Dollar General. $135 is three weeks worth of groceries for me, or my electric, heat, and car insurance bill. You get my drift.

So, of course, I call your customer service line again. This time, I spoke with a manager named Judy, and was told that the $31.89 charge on my account was a mistake that occurred when my order was reprocessed, and would promptly be returned (which it was: a not-so-prompt FIVE days later) and PROMISED that my check, that was still "in processing," would be written out that SAME WEEK and OVERNIGHTED to me, just as my nine-item replacement order that I still hadn't received supposedly was. I said I was okay with this, but really upset that the situation wasn't handled more expeditiously. I felt lucky when the rest of my nine items from my original order placed on Christmas finally arrived the next day- an unacceptable 21 days after I had initially ordered them.

That brings us to the present. Today is February 4th, and it is has been 42 days since your company STOLE $100 out of my bank account. I thought that emailing the details of the situation to you would be a better idea than having to yet again, drone on and on to a customer service representative about this situation one more time, only to receive useless and untrue information in return. I am absolutely DEMANDING my money back immediately, or will be more than happy to proceed to contact my bank, credit card company that represents my bank account, Washington state's Better Business Bureau, as well as BBBonline about this situation.

I look forward to your prompt response as well as an appropriate resolution for this completely ludicrous situation. I also look forward to taking my future petty business, which your company obviously does not value, to my local Williams and Sonoma.

Dismayed, disappointed, and shaking my pointer finger at you,

Rachel

So my Best Buy fiasco gets read by a lot of people over a 3 day period....somewhere around 130,000 times......and apparently only 10 or so people read it in it's entirety. I would like to thank everyone for reading and for their "inventive" comments about me and my story. The result from all of those views is a positive ending. After posting the story on a Friday night to the Consumerist, I get a call on my cell phone Monday afternoon from the District Manager for the Southeast U.S. Best Buy Stores. His name is Mike and he is more than cordial on the phone and is quite apologetic about the whole event. The story was brought to his attention from Corporate and he apparently was tapped as the person to call and try to make things right with me. He is the first person to agree with me that the 2 for $25 deal listing in the store was contradictory to the offer in the circular. After we discuss the situation, he says it never should have escalated anywhere near where it did and he wants to make it up to me since I am such a loyal customer to have purchased something after going through the whole event. He offers me his contact information to personally use for any questions or problems in the future along with a $200 Gift Card. I gladly accept and we discuss a few other details I would like to share with everyone. (I am not sure if I am still receiving the $25 gift card in the mail as well, but at this point it's not important.) First of all......Brian the Manager........is really Brian the ASSISTANT Manager. The store manager is actually named Corey. Now to be fair, Brian never introduced himself as the STORE Manager, but as "THE manager" as you might recall. Regardless, "the headset guy" still referred me to him as the highest level of management there was and I took that at face value. Also, it was made known to me that if an employee is approved to handle money, meaning a register worker, then they also have the ability to make a customer happy based on some common sense rules. This means they do have SOME authority in changing prices on a product right then and there to resolve an issue. Now, typically, this is probably not going to happen because these individuals want to keep their jobs and therefore aren't radically changing things without management approval.....so I will give them a pass. However, it still seems that management failed that evening unfortunately. After I part ways on the phone with Mike, the District Manager, he contacts Corey at the store to hand-deliver the $200 Gift Card to me at the store location at my convenience. I finally felt like someone at the top of Best Buy heard my story and wanted to make it right. About 15 minutes later, Corey contacts me and is also very friendly and cordial and wants to schedule a time for me to stop by the store and accept his apologies and pick up the Gift Card. We decide a convenient time and here I am writing a follow-up article after gladly receiving my card tonight. The great ending to all of this that should get a laugh is what I received from Corey at the store tonight along with my gift card, as a show of good faith and to try to have some fun with the story. A COMPLIMENTARY COPY of SAW IV. Now that's a manager who knows how to make the best of a situation..... Corey and I had a few laughs about many of the comments made online about the story and we parted friends. He assured me that my story was, and will be, used as a learning experience for customer service at the store in the future. So Best Buy has made things right with this consumer and I look forward to shopping there again. And by the way, neither Mike nor Corey asked me to write anything else about the matter or have any kind of retraction. And that's exactly why I am writing a follow-up. It just goes to show that with the power of the internet, the help of the Consumerist site, and a lot of interest at Digg, one customer's story can catch the attention of an entire retail conglomerate.

Thanks to the Consumerist site for listening and posting my un-edited story.

Jason

The laws differ from state to state, and companies tend not to report on gift card income, so it's hard to get an accurate idea of what happens to all those forgotten or abandoned cards. New York state is trying to push other states to support a "uniform federal solution" that would let all states grab a slice of the gift card pie—which certainly can't impress businesses, who must report gift card amounts as liabilities until they're spent or expired.

Who gets to keep that money depends on where the retailer locates its card division. Some states, including Delaware and New York, demand unspent balances be sent to them after periods ranging from two to five years. (If the card is used after that point, the retailer generally honors it but can apply to the state for a reimbursement.) Other states, including Florida and Virginia, allow retailers to hang on to the money. In those cases, after periods ranging from 18 months to seven years, the retailer can move the money from the balance sheet directly into operating income.

Oh, that's not part of the sign? Then why did the manager of the Best Buy in Beaumont, TX refuse to honor the in-store advertisement? Read Jason's story, after the jump.

To preface this story, I would like to say I shop at this Best Buy almost exclusively for games, movies, electronics, and computer related items on a local level. Obviously online shopping is still typically the best place for this stuff, but when I want it in my hands, I go here. I happen to frequent this Best Buy every Tuesday like clockwork because I have about 30 minutes to waste when I leave my main day job and go to a freelance job just down the street from this store. I have been in this routine for over 4 years so I am obviously very familiar with this store. I wait for sales and try to pick up deals when I can. When it comes to deals, I am also very aware of the nuances of sales promotions and disclaimers. I never try to push an issue that I know is not correct based on disclaimers and so forth. I worked in advertising so I am actually sensitive to this stuff myself and I also know that people get paid very well to make sure they don't let mistakes like that through, especially for a company the size of Best Buy. With that all being said, let me explain what happened. I walk into the Best Buy Store #238 in Beaumont, TX at around 6:30pm Wednesday, January 23rd. I am looking for an extra little birthday present for my 66 year old father, specifically a movie, just as a little side gift as entertainment to counter the tools I already bought him. I wander around looking at the movies for awhile and finally decide on 3:10 to Yuma, a new release. The price on it is $19.99. I decide that standard definition movies are a pretty poor investment at that price and put it back and decide to look around for something else. I think standard definition movies should be $14.99 (and below) these days now that the HD formats are becoming the standard. But as I look through the movies, I see one of their sales promotions on a tiny yellow tag. The promotion says: " 2 for $25 - Choose from: 3:10 to Yuma, Good Luck Chuck, Saw IV, and War. Disclaimer: Must be purchased on same receipt. No rainchecks. See a customer specialist for details. TempPart #b015021 Expires 01/26/08" Now I think to myself, that's a pretty good deal since all of these movies are new releases and it meets my self-imposed restriction of buying standard-def movies for under $15. So I am convinced at that point that it's a good deal. I end up choosing two copies of 3:10 to Yuma. One for my father, and the other for me. Now some people may point and say that choice is not vali