Can a retailer legally refuse to honour store credit?

CardiffDevil_2

Hi all. Will try and keep this as short as possible.

I know about all the issues with the Game group calling in the administrators, but was curious about this situation that I found myself in yesterday.

A few months ago I traded in about £65 worth of games to my local branch of Gamestation (not Game, but same group AFAIK). I bought one game with the credit costing £40, and they put the remainder of the credit onto a trade-in card to be used at a later date.

Went in yesterday to buy a new game only to be informed that due to the current administrative situation they cannot currently honour the value on trade-in cards. I could understand them not honouring things like loyalty card points but the value on the trade-in card represents games that I've traded to them.

I could sort of understand if the store was closing down and desperately trying to clear its inventory but they were still open and trading normally as far as I could see.

I know £25 is not a huge sum of money, although I know people who have amassed several hundred pounds in store credit which they were planning on saving for when the next big console is released.

My question is, do I have any kind of legal redress for the value of the card?

Thanks
CD

Hintza

CardiffDevil wrote: »

My question is, do I have any kind of legal redress for the value of the card?

Thanks
CD

Yes, you will become another unseured creditor and if here is any money left you might get some back (eg 10p in the £). To do this you will need to register your claim with the administrators.

In all probability though there will be nothing left, so you will be on to plumbs!

whatmichaelsays

Even though the name above the door is the same, the people who are running the business are not the people who sold you the credit - they're administrators brought in to generate cash much as as possible.

As mentioned above, you are now an unsecured creditor and you'll need to register with the administrater for a chance to claim back, at best, a fraction of what you are owed. That's assuming that there is anything left after secured creditors (ie, landlords), employees, larger creditors (major suppliers) and the taxman have been paid.

pmduk

Very little. You will be one of many creditors of the company. This article on the main site explains in more detail.

CardiffDevil_2

!!!!!!. :mad:

Thanks guys. :beer:

pmduk

In this economic climate it's best to avoid gift cards and leaving credit notes unused.

mountainofdebt

As a side issue to the giftcard / store card credit issue, does anyone know if you can still buy the giftcards at places like tesco?

wealdroam

mountainofdebt wrote: »

As a side issue to the giftcard / store card credit issue, does anyone know if you can still buy the giftcards at places like tesco?

Their website says you can.

Flyboy152

Hmm...would it then be the responsibility of Tesco to refund the cost of the card. They are selling something that is not fit for purpose.

JimmyTheWig

CardiffDevil wrote: »

but the value on the trade-in card represents games that I've traded to them.

Unfortunately for you I agree with the others.

Consider their suppliers. Chances are they sold them tonnes of games, to be paid for on, say, 30 day terms. Game have the games; the suppliers don't have the cash. The suppliers are in the same boat as you.
There isn't enough money for Game to pay all the people they owe money to. It would be unfair on others if they said they'd honour what they owe you at the expense of what they owe others.

Krissy306

im in a simular place as you, ive got £50 of credit to spend... which ive lost