When A Store Or Restaurant Goes Bankrupt, What Happens To All Those Gift Cards?

Waiting too long to use a gift card could cost you.

By Alexandra Hart & Alain StephensOctober 2, 2017 4:24 pm|

People holding onto gift cards for Texas Land and Cattle may be out of luck, after a report from a CBS affiliate in Dallas reported that nearly $27 million worth of gift cards for the restaurant chain are worthless.

Richard Alderman, professor emeritus and director of the Center for Consumer Law at the University of Houston Law Center, says that there is little customers can do to protect themselves from such an ordeal.

When Texas Land and Cattle filed for bankruptcy, the former owners of the restaurant said the money customers spent on  gift cards is all gone. The chain’s new owners say they will not honor those cards purchased before the change in ownership. And Texas Land and Cattle customers are not alone when it comes to losing out on the value of gift cards.

Alderman says the best way to avoid losing money on a gift card you buy is to make sure you use it quickly. Holding onto a gift card for too long increases your chance of getting burned.

 

Written by Nahila Bonfiglio.