Black Friday is set to trigger billions of pounds worth of sales as Christmas shopping season gets underway - but Martin Lewis has a warning for anyone hoping to buy vouchers this season.
Speaking on the ITV Money Show, the consumer expert urged people to avoid credit notes and gift cards over the festive period.
He said uncertainty on the high street and widespread closures in the wake of the pandemic could mean many vouchers lose their worth in the New Year.
“Try to avoid buying vouchers,” Martin explained on Tuesday night’s Money Show.
“People forget they exist, some have expiry dates and when a shop goes bust, they lose all their value,” he warned.
Instead, he said those hoping to pick up vouchers can invest in a charity gift voucher instead. These allow you to donate money to a cause - such as building a new school abroad or feeding a family in need.
Speaking to anyone who has already received a gift card, he said aim to spend it as soon as possible.
This is because when a chain collapses, administrators have no legal responsibility to honour them – and so in most cases, they become void.
If you’ve purchased a gift card and your chosen retailer has gone bust, you have two options.
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Chargeback
It’s not a legal right, but most debit card providers run a scheme called 'chargeback' which means you might be able to ask them to recall your money if there’s a problem.
Call your bank and ask them to ‘charge back’ your money. Explain this is urgent and that the business is going or has gone into administration.
Chargeback is an agreement between card providers and can be used on payments made by debit or credit card. Your bank should try to get you the cash back as soon as possible.
However, if the administrators have closed the business’s accounts, it may be too late.
If you paid by credit card
You've got lots of statutory protection if you pay for goods or services using a credit card.
There’s a nifty law called the Consumer Credit Act that says if you pay for things on a card that cost over £100 and less than £30,000 you could claim the money back from the card provider.
You don’t even need to have spent the whole amount on the card as long as the deposit falls within the limits. This is known as making a claim under section 75.
Alternatively, if you paid using an electronic money service like PayPal, you may be able to claim a refused through its money back guarantee. Check the terms and conditions and make a claim as soon as possible.
