Expired gift cards cost shoppers £90 million
RETAILERS clawed back around £ 90m from Scottish consumers who failed to spend gift cards before their expiry date.
As millions of shoppers gear up for the festive season, campaigners are calling for a change in regulations as it emerged countless people have been left out of pocket.
Industry chiefs estimate that, over the last three years, customers across the UK lost £900m due to gift cards expiring.
Many high street retailers offer vouchers active for anywhere between three months and five years although certain stores, such as TK Maxx and IKEA, say theirs are valid forever. The Government recommendation is two years.
Maria Beardsley, 79, and her
husband Herb, 88, were told they could not spend a £100 gift card at The Centre, Livingston, because it had expired after one year.
EML, the company behind the gift card, was forced to extend the use-by date.
It had been bought as a present for retired storeman Herb on his 85th birthday but, because the couple had been mourning the loss of their son-in-law Douglas, they’d forgotten about it until going through old papers.
“I don’t remember Herb even receiving the gift card,” said Mrs Beardsley, a retired teacher from Blackburn, West Lothian.
It was only after contacting The Sunday Post to look into the issue that Mrs Beardsley was offered credit.
“The gift card came by recorded delivery,” she said.
“I have never called them to say thank you because that is our money. “It isn’t fair that this happens.” Patrick Robbertze, director at The Centre, Livingston, said: “Unfortunately in the main, gift cards are unable to be extended. Once a gift card has expired, there is an administration cost associated with refunding money on to a new card.”
Patricia Gibson MP, the SNP’s consumer spokesperson, is to table a Westminster motion to pressure ministers to take action.
She said: “It is appalling that if gift cards are not used by apparently arbitrary dates, stores are not honouring them.”
Marc Gander, founder of Consumer Action Group, said: “It is effectively lending money to the company interest-free.
“I’m quite sure that company gift card schemes are predicated on the assumption that a percentage of cards will be lost or will expire.
“There’s no good reason I can think of to put any ‘use-by’ date on gift cards.
“It shows that these companies live in a get- something- for- free society. I think it profits from the joyous giving of others.”
The Department of Business, Energy and Industrial Strategy said ministers were considering how to improve gift card regulations.