Is my House of Fraser gift card worthless?

QFOR my birthday in May, my grown-up children gave me a £100 House of Fraser gift card. I decided to keep it so I could buy something for the autumn – so I am now looking. But since House of Fraser has run into financial problems and has been bought by another company, I’ve been told that my gift is now worthless.

Is this right? Is there anything I can do about it? Maria A

AGIFT cards and vouchers are often, as here, presents. Your children didn’t know exactly what to buy but they knew you liked House of Fraser merchandise. Equally, you end up with a gift card because you want a refund where you don’t have the plastic used for purchase or you have gone beyond the store’s cash refund period.

Either way, the legal position is clear – and it’s not shopper friendly. The money on the card belongs to the store – not you. Some retailers put arbitrary time limits on cards – if you forget to use them, they become worthless. And if a store goes out of business – even if it is then rescued – you lose your money as well. You become a creditor – possibly joining HMRC and utilities – and may end up with nothing or just a few pence for each pound.

What has happened to your House of Fraser voucher has already happened to many other store gift card holders over the years – and could well happen again due to the precarious position many high street retailers find themselves in.

House of Fraser was bought by Sports Direct from the administrators for £90m. The last thing the new owners want is disgruntled customers on social media. As a gesture, Sports Direct says it will exchange Fraser cards for new, valid, ones. But you have to post the card – ensure you have its number and photograph it first – to Gift Cards, 27 Baker Street, London, W1U 8AH. It is not clear how long this will take or the terms and conditions of the new cards – Which? says “we don’t believe the Sports Direct announcement offers customers enough information.”

Alternatively, as your card was £100, ask if they bought it with a credit card. This amount is just enough to ask the card issuer for a Consumer Credit Act Section 75 refund.