company still trading but wont accept gift card

I_luv_cats

http://news.bbc.co.uk/1/hi/programmes/moneybox/9711345.stm

Interesting discussion on moneybox.

OpCapita, the new owners of Game has confirmed that people will be able to start using gift and rewards cards they have previously bought from tomorrow.
The cards had become worthless after the Game Group went into administration at the end of last month, leaving customers furious. But OpCapita was under no legal obligation to honour these liabilities as far as we are aware.
However the company has decided to reverse the decision of the administrators and accept the cards again.

Read more: http://www.computeractive.co.uk/ca/news/2166460/game-gift-rewards-cards-accepted-store-friday#ixzz1rNnWWkgG

riccib123

Will be interested if Peacocks do same....

vax2002

I never understand "gift cards" surely a bank note is a gift token ?

riccib123

Not sure I'd risk that one!

Stephen_Leak

riccib123 wrote: »

Once again, thanks all of you who posted a reply. Guess I'm not a business brain, just a soft touch who likes things to be fair - or at least seem fair...

"Business" and "fair" are words, that you seldom see in the same sentence.

custardy

Stephen_Leak wrote: »

"Business" and "fair" are words, that you seldom see in the same sentence.

unless they are complaining they are being unfairly treated

riccib123

Apparently I will be lucky to get back 1p in the pound, so I may see 10p!! Still, whilst Jethro may well be right, don't think I'm up for the hassle for £10, but thanks again for your input. If the 'courts' rule this type of payback unfair, I will be there!

George_Michael

riccib123 wrote: »

Still, whilst Jethro may well be right, don't think I'm up for the hassle for £10

There is no "may" about it.
What Jethro wrote is totally wrong, and I've reported the post as it could encourage others to commit a criminal offence.

As has already been properly explained. When a company buys up a firm that has folded, they are buying the trading name and the assets of that company and not the debts.
Even though the new business may be operating from the same shop front, legally they are a separate company.
The original debts of the company will be paid if there is enough money available for this, but there is a strict order of payment and unsecured debts (such as gift card holders) are the last to be paid out.

shaun_from_Africa

A simple way to look at it is a house sale.

Imagine that person A owns a house and they have defaulted on their mortgage payments and other debts and the house is repossessed by the mortage company.
This house is then sold by the mortgage company in an attempt to recover some of their money.
Meanwhile, person A is declared bankrupt and has no assets remaining.

Person B buys the house and moves in.
What do you think that they would do if a bailiff appointed by the local water board turned up at their house, looking to seize property to sell so they could recover water rates owed to them by person A.

This is what JethroUK is suggesting that you do.

There are 2 categories of creditors who may be owed money, secured and unsecured.
A secured creditor is someone who is owed money and their liability is secured on a defined items (such as the mortgage company whose money is secured on the property itself), and an unsecured creditor such as the water company.

The holder of a gift card is an unsecured creditor as they do not have a legal claim to a specific item that belonged to the original retailer.