I think this is rude?

wannabee · 03-01-2011, 12:20 AM

Borders Australia just went into receivership and they will not honor their gift certificates on line. If you want to use a gift certificate in store you must purchase items twice the value of the certificate in order to redeem it.

Then last week they started emailing customers with this. How would you feel if you had a gift certificate by you computer?

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wyndslash · 03-01-2011, 12:25 AM

What? I don't understand why they are doing this...

pietrocrazy · 03-01-2011, 12:28 AM

It's certainly a gamble on their part. Borders risks alienating their best customers, since I imagine that people with gift certificates are more likely to be those who shop there often. And of course now more than ever they need customers to stay in business.

If I had a gift card to Borders when they pulled this, you can bet that I would use my card and never set foot in there again.

Giggleton · 03-01-2011, 12:32 AM

I read about this a few days ago, I wasn't sure what it meant lol. But basically, you paid 50 dollars for a 50 dollar voucher a month ago and now they are saying that voucher is only worth 25 dollars??

Seems crazy, but then again what isn't these days?

elcreative · 03-01-2011, 12:39 AM

If Borders went into receivership then it is no longer under the control of Borders management but the receivers... these are outsiders whose job is to maximise the amount of money that creditors will receive and they are not obliged to honour Gift Vouchers at all as possessors of them are just more creditors so they could say wait until we've got as much cash as available and we'll pay out all unsecured creditors at 10 cents on the dollar or similar... so, yes it stinks but it may be better to take advantage quickly while they've still got anything you may want or you may end up with (virtually) nothing at all...

Giggleton · 03-01-2011, 12:41 AM

Quote:

Originally Posted by elcreative

If Borders went into receivership then it is no longer under the control of Borders management but the receivers... these are outsiders whose job is to maximise the amount of money that creditors will receive and they are not obliged to honour Gift Vouchers at all as possessors of then are just more creditors so they could say wait until we've got as much cash as available and we'll pay out all unsecured creditors at 10 cents on the dollar or similar... so, yes it stinks but it may be better to take advantage quickly while they've still got anything you may want or you may end up with (virtually) nothing at all...

I see now, just wasn't up to date on the intricacies of corporate bankruptcy law.

jehane · 03-01-2011, 01:00 AM

Quote:

Originally Posted by Giggleton

I read about this a few days ago, I wasn't sure what it meant lol. But basically, you paid 50 dollars for a 50 dollar voucher a month ago and now they are saying that voucher is only worth 25 dollars??

Seems crazy, but then again what isn't these days?

Not quite. The voucher is still worth $50 but you have to spend $100 to redeem it. You can't spend just the $50.

Bear in mind that this is happening in Australia, so corporate bankruptcy laws may not be the same as in the US.

CazMar · 03-01-2011, 01:02 AM

Quote:

Originally Posted by pietrocrazy

It's certainly a gamble on their part. Borders risks alienating their best customers, since I imagine that people with gift certificates are more likely to be those who shop there often. And of course now more than ever they need customers to stay in business.

If I had a gift card to Borders when they pulled this, you can bet that I would use my card and never set foot in there again.

Yes and yes!
If I hadn't had the warning from this site about Borders US I would probably still be hanging on to all my Christmas gift cert. which I was going to use for Uni textbooks. Luckily I spent a big portion of it just before the crash.
Borders has now lost me as a customer unless they honour the remainder of my gift card. Forever.

CazMar · 03-01-2011, 01:03 AM

Quote:

Originally Posted by elcreative

If Borders went into receivership then it is no longer under the control of Borders management but the receivers... these are outsiders whose job is to maximise the amount of money that creditors will receive and they are not obliged to honour Gift Vouchers at all as possessors of them are just more creditors so they could say wait until we've got as much cash as available and we'll pay out all unsecured creditors at 10 cents on the dollar or similar... so, yes it stinks but it may be better to take advantage quickly while they've still got anything you may want or you may end up with (virtually) nothing at all...

And if you get 10c in the $ I'll be most surprised.

HarryT · 03-01-2011, 01:23 AM

Quote:

Originally Posted by wyndslash

What? I don't understand why they are doing this...

What is it that you don't understand? If you have a gift certificate, you are a creditor of the company. This is actually a pretty good deal for the receiver to offer creditors; as has been said by someone else, in the normal course of events you'd be lucky to get back 10c in the $!

HarryT · 03-01-2011, 01:25 AM

Quote:

Originally Posted by CazMar

Borders has now lost me as a customer unless they honour the remainder of my gift card. Forever.

As has already been said, this has absolutely nothing to do with Borders; the decision has been made by the court-appointed Receiver.

snipenekkid · 03-01-2011, 02:39 AM

maybe this is a good time to rethink NOT buying gift certs from pretty much any company, even say, Amazon, well maybe not Amazon, but use pre-paid VISA/Mastercard/AMEX cards instead as the actually credit card company will always be there to back the holder of the card.

I honestly never considered the devaluation of prepaid gift cards if a company goes teats-up. But I suppose that is how it works if the holder of the cert is considered a creditor.

Theeeeen again, if it was purchased with a credit card....tadaaaa, I bet you are covered for the full original value of the card. CC companies don't like to have their interest paying cardholders boned by companies. So maybe that is an option you might have to check into? Don't know but, hey worst you are out is 15-minutes on the phone with the credit card company.

snipenekkid · 03-01-2011, 02:42 AM

Quote:

Originally Posted by HarryT

What is it that you don't understand? If you have a gift certificate, you are a creditor of the company. This is actually a pretty good deal for the receiver to offer creditors; as has been said by someone else, in the normal course of events you'd be lucky to get back 10c in the $!

harry,

are you fully certain this is the law in Australia? You are well versed in UK consumer issues but just wanted to make sure you know for certain that is how it works in Australia.

And in any event much will depend on the consumer protection laws in Australia. Then again $50 will buy, what 1.5 books at prices in Australia? Still it stinks on ice no matter the outcome.

Solicitous · 03-01-2011, 04:01 AM

Quote:

Originally Posted by wyndslash

What? I don't understand why they are doing this...

I imagine the real reason is if someone redeems a gift voucher there is no additional revenue for the company. By enforcing people in the interim to match dollar for dollar the value of their redeemed gift voucher, it is in turn increasing revenue for the company. I guess every little bit helps.

Quote:

Originally Posted by HarryT

As has already been said, this has absolutely nothing to do with Borders; the decision has been made by the court-appointed Receiver.

Actually Harry, Borders Australia and Angus & Robertson went into voluntary administration, so no courts were involved or appointed an administrator.

HarryT · 03-01-2011, 04:05 AM

Quote:

Originally Posted by Solicitous

Actually Harry, Borders Australia and Angus & Robertson went into voluntary administration, so no courts were involved or appointed an administrator.

Thank you; I stand corrected. The point, however, still remains valid: that this decision was made by the Receiver, and not by Borders. It's the Receiver who's now running the company.

03-01-2011, 12:20 AM	#1
wannabee Media Bloke Posts: 2,382 Karma: 113956855 Join Date: Sep 2010 Location: NSW - Australia Device: iOS	I think this is rude? Borders Australia just went into receivership and they will not honor their gift certificates on line. If you want to use a gift certificate in store you must purchase items twice the value of the certificate in order to redeem it. Then last week they started emailing customers with this. How would you feel if you had a gift certificate by you computer?

03-01-2011, 12:39 AM	#5
elcreative Wizard Posts: 2,888 Karma: 5875940 Join Date: Dec 2007 Device: PRS505, 600, 350, 650, Nexus 7, Note III, iPad 4 etc	If Borders went into receivership then it is no longer under the control of Borders management but the receivers... these are outsiders whose job is to maximise the amount of money that creditors will receive and they are not obliged to honour Gift Vouchers at all as possessors of them are just more creditors so they could say wait until we've got as much cash as available and we'll pay out all unsecured creditors at 10 cents on the dollar or similar... so, yes it stinks but it may be better to take advantage quickly while they've still got anything you may want or you may end up with (virtually) nothing at all... Last edited by elcreative; 03-01-2011 at 12:43 AM.

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03-01-2011, 12:25 AM	#2
wyndslash Wizard Posts: 2,951 Karma: 3000001 Join Date: Feb 2011 Device: Kindle 3 wifi, Kindle Fire	What? I don't understand why they are doing this...

03-01-2011, 12:28 AM	#3
pietrocrazy Connoisseur Posts: 74 Karma: 706 Join Date: Feb 2011 Device: Kindle	It's certainly a gamble on their part. Borders risks alienating their best customers, since I imagine that people with gift certificates are more likely to be those who shop there often. And of course now more than ever they need customers to stay in business. If I had a gift card to Borders when they pulled this, you can bet that I would use my card and never set foot in there again.

03-01-2011, 12:32 AM	#4
Giggleton Banned Posts: 1,687 Karma: 4368191 Join Date: Jan 2011 Location: Oregon Device: Kindle3	I read about this a few days ago, I wasn't sure what it meant lol. But basically, you paid 50 dollars for a 50 dollar voucher a month ago and now they are saying that voucher is only worth 25 dollars?? Seems crazy, but then again what isn't these days?

03-01-2011, 02:39 AM	#12
snipenekkid Banned Posts: 760 Karma: 51034 Join Date: Feb 2009	maybe this is a good time to rethink NOT buying gift certs from pretty much any company, even say, Amazon, well maybe not Amazon, but use pre-paid VISA/Mastercard/AMEX cards instead as the actually credit card company will always be there to back the holder of the card. I honestly never considered the devaluation of prepaid gift cards if a company goes teats-up. But I suppose that is how it works if the holder of the cert is considered a creditor. Theeeeen again, if it was purchased with a credit card....tadaaaa, I bet you are covered for the full original value of the card. CC companies don't like to have their interest paying cardholders boned by companies. So maybe that is an option you might have to check into? Don't know but, hey worst you are out is 15-minutes on the phone with the credit card company.

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