Independent financial adviser John Bloomfield is calling on the Government to take action on store gift cards.
The move comes after HMV administrators Deloitte initially announced that it would not allow customers to use gift cards at the troubled chain.
However, pressure from government and publicity for a man who stormed out of an HMV store with games in hand after staff refused to accept his credit saw Deloitte reverse its decision, brining it in line with Blockbuster which continued to honour gift cards despite its fall into administration.
When a retailer goes in to administration the public’s gift cards can no longer be redeemed as card owners simply become a creditor of the business even if the administrator keeps the operation trading,” the petition reads.
In order to instil more faith in Gift Cards the government should look to protect the Gift Card holder so that they are not treated as all other creditors of the business.
The options are quite clear. Option 1: all revenue from gift cards should be held in a trustee account until the gift card has been redeemed or expired. Option 2: create a higher level of creditor class for gift cards so they can be redeemed during a period of administration.”