MSE News: Blow to Peacocks shoppers as gift cards no longer accepted

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Consumers with gift cards for retailer Peacocks can no longer use them as the company has gone into administration ..."

Read the full story:

Blow to Peacocks shoppers as gift cards no longer accepted

powerful_Rogue

Nice to see MSE on the ball! This has been running for a few days now in the Praise, Vent and Warning section of the site.

A_Flock_Of_Sheep

A friend of mine has been caught up in this and attempted to return a faulty item and was refused.

She has got round this by doing a chargeback on her Debit Card and her Bank - The Cumberland Building Society have been very helpful.

corbyboy

I find the whole administrator thing very interesting.

There have been many companies who have "called in the administrators" over the last few years and it is always one of just a couple of companies.

These guys seem to make an absolute fortune on the backs of struggling companies. They always seem to get paid many millions for their work and they are always the first paid when the assets are sold off.

At least somebody is making money from the economic downturn!

alanq

MSE article:
"Peacocks will no longer process refunds on unwanted or faulty goods, whether these were purchased before or after 19 January, ..."

I can understand no refunds for goods sold before administration. I can understand no refunds on unwanted goods as no shop is required to refund or exchange them. But if goods sold during administration are found to be faulty then I would expect that one would have a statutory right to replacement or a refund.

Indeed the Peacocks website says:
"The Company will NOT in any circumstances refund unwanted goods, whether these were purchased before or after 19 January 2012...."
"This does not affect your statutory rights."

dazza.mk

alanq wrote: »

Indeed the Peacocks website says:
"The Company will NOT in any circumstances refund unwanted goods, whether these were purchased before or after 19 January 2012...."
"This does not affect your statutory rights."

And they wouldn't be denying your statutory rights, however insolvency law takes precedence in the circumstances and you instead become an unsecured creditor (rather than receiving a cash refund).

terra_ferma

I beats me why people buy gift cards. You are basically loaning the company money, and in return you get a piece of plastic, with terms and conditions on how you can spend YOUR money, often an expiry date, and the risk of losing your money altogether.

magpiecottage

I note that the OFT has said that claims under Section 75 of the Consumer Credit Act 1974 in respect of gift cards is a "grey area".

However a dispute with the card provider would fall under the jurisdiction of the Financial Ombudsman Service under the Consumer Credit Act 2006.

The involvement of two Acts with the same name is confusing but what it means is the 2006 Act allows the FOS to decide on a dispute involving the 1974 Act.

There are clear analogies to the insolvency of a firm called Keydata where the FOS position has been that adivsers incorrectly advising the purchase of its products should, in effect, purchase the product from the consumer at what their investment would have been worth. The adviser is then entitled to keep any money that it is able to get back from the product.

im-lost

corbyboy wrote: »

I find the whole administrator thing very interesting.

There have been many companies who have "called in the administrators" over the last few years and it is always one of just a couple of companies.

These guys seem to make an absolute fortune on the backs of struggling companies. They always seem to get paid many millions for their work and they are always the first paid when the assets are sold off.

At least somebody is making money from the economic downturn!

Ever thought that only a few companies have the resources and contacts to deal with companies with such massive debts?

Its not like old bob the accountant on the corner can handle it :rotfl:

These few companies are called in as they are the best at what they do, believe it or not, and they earn every penny of their commission.

Mrs_Dizzy

terra_ferma wrote: »

I beats me why people buy gift cards. You are basically loaning the company money, and in return you get a piece of plastic, with terms and conditions on how you can spend YOUR money, often an expiry date, and the risk of losing your money altogether.

This sounds a bit thick. I reall had never thought of it like that. I def will not be purchasing anymore gift cards again. Thanks for letting me know something that I really never thought about:)

2sides2everystory

im-lost wrote: »

These few companies are called in as they are the best at what they do, believe it or not, and they earn every penny of their commission.

Really ? And you know this because ?