California court tells Sharper Image gift card holders where to go
Filed under: Ripoffs and Scams, Shopping
It's been a roller coaster ride for consumers trying to figure out what to do with their Sharper Image gift cards.When the overpriced gadget chain filed for bankruptcy, it declared that it would no longer accept its own gift cards. Then it sort of relented, agreeing to accept gift cards, provided that you bought an equal value of goods with cash. So if you had a $50 gift card, you would have to buy another $50 worth of stuff in order to use it.
Then the California state attorney general's office sought a temporary restraining order, seeking to block the company from requiring people to buy twice as much stuff in order to get what they'd paid for. But the Alameda County superior court refused to hear the case, saying that it didn't have jurisdiction because of Sharper Image's bankruptcy filing.
Check out the Wall Street Journal article (subscription required) for the legal details. Those issues aside, it seems that the consumer protection laws in this area are seriously lacking. People do not buy gift cards with the understanding that there is a possibility they will be stiffed in the way that banks do when they lend money.
Public companies are not even allowed to book a sale from a gift card until it's redeemed for merchandise. Given that, gift card purchases should be held in some kind of escrow account, and not released into the company's general ledger until the sale has been completed. The gift card money should be separate from the rest of the assets involved in the bankruptcy.
Recent Posts
- Stop your wife's expensive shoe habit with this T-shirt! (1/09/2009)
- The Job Hunt: No, you're not imagining it - unemployment gets worse (1/09/2009)
- Princeton slashes budget as endowment tanks (1/09/2009)
- Analysts say unemployment makes a bad year to buy a home (1/09/2009)
- Mayor defends city buying himself a gas guzzling Hummer (1/09/2009)
Reader Comments (Page 1 of 1)
4-16-2008 @ 2:54PM
austinchu said...
Great article. You bring up a good point. There is a misconception that when I purchase a gift card, I"m able to spend it like cash. But with large retailers it isn't necessarily the case. There's a lot of potential with gift cards being void. Companies are filing for bankruptcy all the time now. My advice? Spend the cards as soon as you get them. There's more information on gift card bankruptcy at savvywallet.com.
Reply
6-25-2008 @ 4:46PM
Austin Chu said...
Below are the ways to file a claim to get your gift card back. Bear with me, it's long:
1. File a claim with the federal bankruptcy court. Follow these steps:
A. Because The Sharper Image's bankruptcy was filed in Delaware, you have to visit the Delaware Bankruptcy Court Page.(http://www.deb.uscourts.gov/claims/sort_names.htm) Scroll down to Sharper Image.
B. Fill out Form 10 from the Federal Bankruptcy Court.
C. Download, print and sign it, and mail it to:
Kurtzman Carson Consultants, LLC (http://www.kccllc.com/)
Jonathan Carson
2335 Alaska Avenue
El Segundo, CA 90245
310-823-9000
310-823-9133
D. If you have trouble call the Bankruptcy Judges Division at 202.502.1900. Explain your situation, and they will walk you through the process. You will get a person on the phone as well.
E. Take these steps to file a claim with the Federal Bankruptcy Court
2. Take advantage of the offer from competitor The Sharper Image's competitor, Brookstone, to give a 25 percent discount to anyone who surrenders their Sharper Image gift card or certificate.
3. Try filing a claim with your credit card issuer, if you used a credit card to buy a Sharper Image gift card
A. Request a refund from the card issuer.
B. American Express is 'working on behalf' of it's card holders who submit such claims, even if the submission is beyond the 60 day statutory limit. This will be on a case by case basis.
C. Also, AMEX cardholders who opted for the Sharper Image gift card as membership rewards programs can return it and have their rewards points re-credited to your account. MUST DO IT WITHIN 60 DAYS
4. Also if a card that you gave or received was purchased from LeverageCard.com, Leverage has a bankruptcy policy that allows cards that are purchased via LeverageCard.com to be replaced with any retailer of choice. You can read more here. (http://findarticles.com/p/articles/mi_pwwi/is_200802/ai_n24330330)
Reply