In wake of Iron Hill Brewery & Restaurant closing, what happens if you have an unused gift card?
In the wake of Iron Hill Brewery and Restaurant abruptly closing its remaining locations on Thursday, some customers have wondered what it means if they have unspent gift cards.
Unfortunately, consumer advocates say there is no guarantee of getting your money back if you're hanging onto unused gift cards to a place that's gone out of business. But there are a few options you can try.
You might have some luck contacting the company directly to request a refund, or calling around to competitors to see if they'll honor the gift card, according to the Consumer Federation of America.
You can also contact your state's consumer protection officials and submit a complaint. It can help track the issue, but it's unlikely they'll be able to intervene, particularly if the business filed for bankruptcy.
In New Jersey, you can file a complaint online with the New Jersey Division of Consumer Affairs or email askconsumeraffairs@dca.njoag.gov.
The Division of Consumer Affairs receives "numerous" consumer complaints about gift cards each year, according to Lisa Coryell, spokesperson for New Jersey Attorney General Matt Platkin.
"The Division encourages New Jersey consumers to promptly use any gift cards or store credit if a business announces they will completely cease operations," she said. "Once a store enters bankruptcy, the Division is unable to get consumers refunds for unused gift cards."
You can file a consumer complaint online with the Pennsylvania Attorney General's Office, or you can call 800-441-2555.
"Any Pa. consumer who feels they have been harmed is encouraged to file a complaint with our Bureau of Consumer Protection," said Brett Hambright, spokesperson for Pennsylvania Attorney General Dave Sunday.
In Delaware, complaints can be filed online with the state's Fraud and Consumer Protection Unit. Residents can also call 800-220-5424 or e-mail consumer.protection@delaware.gov
"Our office generally does not play a role in the bankruptcy process or intervene on any individual's behalf in bankruptcy proceedings," said Mat Marshall, a spokesperson for Delaware Attorney General Kathy Jennings.
Marshall said in cases where the business filed for bankruptcy, consumers can file a proof of claim because gift card holders are considered creditors. But don't count on getting a full refund.
"Gift cards are considered unsecured debt, which places them at the back of the line among the company's creditors," he said.
Finally, if you recently purchased the gift card with a credit or debit card — say within the past 60 days — you may be able to reverse the charge so the money is refunded.
Bottom line, if you ever receive a gift card, it's best to use it as quickly as possible.
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