Iron Hill Brewery Closes, What Happens If You Have an Unused Gift Card?
Iron Hill Brewery & Restaurant’s remaining locations’ Thursday closure left many faithful customers wondering what becomes of their unused gift cards.
Alas, consumer advocates say the news isn’t very good: there isn’t a surefire way to get your money back after a business closes its doors.
As dictated by the Consumer Federation of America, consumers can probably succeed in asking Iron Hill directly to refund their purchases. The other alternative is contacting competitors, who at times accept gift cards from closed stores as a gesture of goodwill. These are however long shots, and it all hinges on whether the company has actually filed for bankruptcy.
State consumer protection agencies indicate they are able to take complaints, which allows them to monitor patterns of gift card problems, but they typically are not able to act to return consumers their money after a company goes into bankruptcy proceedings.
Complaints can be filed in New Jersey online on the Division of Consumer Affairs or by sending an email to [email protected]
. Lisa Coryell, a spokesperson for New Jersey Attorney General Matt Platkin, stated that the division gets “numerous” complaints regarding gift cards annually. “The Division urges New Jersey consumers to use any gift cards or store credit quickly if a business is announcing they will shut down entirely,” she stated. Refunds are no longer available once bankruptcy is filed.
In Pennsylvania, consumers are able to complain to the Attorney General’s Bureau of Consumer Protection online or by dialing 800-441-2555. Attorney General Dave Sunday’s spokesperson, Brett Hambright, encouraged residents: “Any Pa. consumer who believes they’ve been harmed is urged to file a complaint with our Bureau of Consumer Protection.”
Delawareans can also lodge complaints with the state’s Fraud and Consumer Protection Unit, either online, by calling 800-220-5424, or by sending an email to [email protected]
. But as Attorney General Kathy Jennings’ spokesperson, Mat Marshall, explained, the office is powerless to act in bankruptcy matters. Consumers who have gift cards can submit a proof of claim instead. Gift cards are considered unsecured debt, though, so cardholders end up at the bottom of the heap if and when the cards are paid out – and expect no full refunds.
One potential work-around exists for new purchasers. If a gift card was bought with a debit or credit card in the last 60 days, customers can potentially file a chargeback through the bank or credit card issuer to get the money back and reverse the purchase.
The key, specialists emphasize, is to always redeem gift cards promptly. Keeping them might prove to be dangerous, particularly when companies are financially troubled. As Iron Hill Brewery’s bankruptcy illustrates, unused gift cards tend to depreciate immediately if a company closes its doors permanently.
For the time being, customers who have unused Iron Hill Brewery gift cards can attempt to contact the company directly, complain to state authorities, or request a refund from their credit or debit card issuer if they qualify. But hopes need to be kept in check – there are limited possibilities, and refunds are not even close to sure.
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