This document outlines your rights regarding the use of gift vouchers and gift cards in the event that a firm falls into administration, as well as how you may be able to retrieve any money that you have spent using these types of gifts.

In the process of being administered company

When a business is having trouble making ends meet, it may be forced to enter administration, at which point the administrator’s primary responsibility is to attempt to salvage the business.

This may entail streamlining it, such as decreasing the number of stores to get rid of the less lucrative ones or seeking for a buyer for the business. Alternatively, this may involve looking for a buyer.

During the time that the administrator is engaged in this procedure, the corporation may, for the most part, continue to function in the same manner that it did before to the administration.

In the end, it is possible that the firm will be put into liquidation if the efforts of the administrator are fruitless or if a buyer cannot be located.

Find out what options you have available to you in the event that a retailer goes bankrupt.

If I still have my vouchers, may I utilise them?

It depends. When a firm enters into administration, the administrators are granted various authorities to assist in turning around the fortunes of the company.

Because of these abilities, they have the ability to refuse to take vouchers if they believe that doing so would be in the company’s best interest.

Be sure to monitor how the administration is proceeding, as it is possible that the administrators will initially decide not to accept vouchers but will thereafter change their minds and decide to do so.

KEY INFORMATION

In conclusion

In the event that you are unable to make use of your coupons, you should file a claim with the liquidators for the value of the vouchers.
Keep in mind that because you are an unsecured creditor, you run the risk of receiving only a small percentage of the amount you are claiming or receiving nothing at all.
If the voucher or amount put on a gift card was for more than £100, then the person who bought it may be able to get the money back from their credit card issuer. However, this only applies if the voucher or amount was for more than £100.

Vouchers are not going to be accepted by the administrators.

If the administrators refuse to take vouchers, there is not much you can do about it in reality because of the control they hold over the situation.

You are no longer able to pursue legal action against the corporation once it has been placed in administration (for the breach of contract).

Having said that, you do have some choices available to you. If a company goes bankrupt and you haven’t been able to use your coupons, you should file a claim with the liquidators to get the value of the vouchers refunded to you if you haven’t been able to use them (contact them to confirm the process for lodging a claim).

Unfortunately, this means that you will only be considered an unsecured creditor, and it is possible that you will only receive a small percentage of the total amount that you are seeking or nothing at all.

Coupons that were purchased with a credit card

If the voucher or amount put on a gift card was for more than £100, then it is possible for the person who bought it to claim the money back from their card issuer. However, this option is only available if the voucher or amount was for more than £100.

According to Section 75 of the Consumer Credit Act of 1974, the card company is jointly accountable for any breaches of contract that occur (in this case, the failure to provide the products in exchange for the voucher or card). This is the reason why this is the case.

Be aware, however, that if the voucher or card was purchased through a third party, such as a grocery store, then it may be more difficult for you to convince the card provider that Section 75 applies to the situation. This is something you should keep in mind.

Reduce the likelihood that there will be an issue.

If you are purchasing coupons worth more than one hundred pounds, it is recommended that you purchase a single voucher or a gift card for the full amount rather than a number of vouchers with varying denominations.

If you buy the vouchers or gift card in this way using your credit card, it will be evident that you have one single item costing more than £100, giving you a stronger possibility of using Section 75. This is because the threshold for using Section 75 is one single item costing more than £100.

Again, increasing your chances of success in successfully contesting a claim under Section 75 by making payment directly to the entity that is issuing the voucher or card.

Do not let your vouchers get dust.

If there is something that you are certain you want, it is in your best interest to purchase it as soon as possible in case the company does end up going into administration and the administrators decide that they will no longer take vouchers.

People can choose to hold off on using their vouchers until the company has a going-out-of-business sale so that they can see if they can get a good deal with them.

Once the administrators have been appointed, there is a possibility that they will not take vouchers in any capacity, including when purchasing things that are on sale.