Bucks County restaurant closure sparks refund frustrations for gift card holders
When a business closes its doors, customers holding unused gift cards are often out of luck.
But when a popular Bucks County restaurant shut down overnight last fall, its owner promised refunds. Months later, some customers say they are still waiting.
Consumers turned to In Your Corner after Rocco's at the Brick in Newtown suddenly closed, leaving many people with unused gift cards worth hundreds of dollars.
Promises made, refunds delayed
The restaurant posted a message on its door and on Facebook after closing, saying customers would be refunded and included instructions on how to request their money.
Lisa Feldman, who had an unspent $100 gift card, said she immediately followed the instructions and submitted her request.
Months later, and after several attempts to get an explanation from the restaurant, Feldman contacted In Your Corner after she still had not received her refund.
"They did everything possible to convince everyone that they would be reimbursed in full," she said. "It's a matter of principle and that's what annoys me so much."
Social media comments on the restaurant's Facebook page show several customers reporting similar delays, with some saying they have received no response at all.
In Your Corner spoke with four customers waiting on refunds collectively totaling $650.
Attorney says refunds are being issued
In a statement, an attorney for the restaurant's owner, Marc Gelman, said Rocco's received "hundreds" of refund requests and has issued nearly $50,000 in reimbursements so far.
The attorney said with the restaurant no longer operating, there is a limited number of staff handling requests.
"While that has impacted the pace of responses, Rocco's believes it has been working through requests in a reasonable and diligent manner under the circumstances," the statement said.
"Rocco's remains committed to honoring valid gift card refund requests and will continue processing outstanding submissions. Customers who have already followed the previously provided instructions should be assured that their requests are being addressed, and Rocco's intends to fulfill those obligations," the statement said.
CBS News Philadelphia confirmed a representative for the restaurant reached out to Feldman just hours after inquiries were made. She later received the full $100 refund for her gift card.
What you should know
Even so, consumer experts warn there are few legal protections when a business shuts down.
There is no law requiring a closed business to refund gift cards.
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.
If a refund is not offered, customers can file a complaint with their state's consumer protection office, which may be able to help pressure a business to return funds. You can file a consumer complaint online with the Pennsylvania Attorney General's Office, or you can call 800-441-2555.
If the business declared bankruptcy, you can file a proof of claim because gift card holders are considered creditors. But gift cards are considered unsecured debt, which places them at the back of the line among the company's creditors.
Gift cards unredeemed five years from their issue date can be forfeited to the state. You might be able to seek it as unclaimed property.
If the gift card was purchased with a credit card within 60 days of the business closing, customers can also request a chargeback from their card issuer.
READ MORE: How to avoid falling for a gift card draining scam
A simple reminder
Consumer advocates say the safest option is often the simplest one: Use gift cards as soon as possible.
When a business closes, promises may be made, but refunds are never guaranteed.
Looking for help with a consumer issue? Click here to submit your complaint to In Your Corner.
