Cash in Christmas gift tokens while shops last
Friday January 02 2009
CASH in those Christmas gift vouchers now -- or you may regret it.
That's the advice from the country's consumers' watchdog which fears that thousands of Irish people will be badly stung over the coming months by the continuing downturn in the retail sector.
The Consumers Association of Ireland (CAI) is also advising shoppers against placing hefty deposits on luxury items featured at vastly reduced prices in New Year sales. The well-publicised collapse of many household names in the retail sector should serve as a warning to everyone, the CAI has warned.
With millions of euro tied up in Christmas vouchers and gift tokens, the association says that putting them in a drawer for the time being is just about the worst thing you could do.
"We're saying that anyone with a voucher or Christmas gift token should really cash it in now and get its full value. People may be very disappointed to find the business gone in six or 12 months and they are unable to redeem their voucher", said CAI president Michael Kilcoyne.
If a store that sells a voucher closes down, the holder becomes an unsecured creditor of the retailer and the voucher is then a liability that the store has not met.
If the store was a registered company, a liquidator will be appointed to wind up the company. Unsecured creditors must register with the liquidator. A claim will only be considered after those of secured creditors.
Logic
Mr Kilcoyne added: "The same basic logic applies to deposits. In the current economic environment, with so many household names in the retail sector going out of business, it only makes sense to avoid placing long-term deposits on expensive items. Unless you are sure that the item you want is in stock and can be secured pretty much immediately, then don't take any chances with your hard-earned money.
"There's no point in turning up in a few months to claim the item you think is yours and finding an empty space and four walls".
The CAI is lobbying the Government to introduce legislation for a five-year life span for all vouchers. "It is already quite clear that, retail-wise, things are going to get much worse this year and whether it is with vouchers or deposits, many people will inevitably get their fingers burnt".
