CLIFTON PARK, N.Y. (WRGB) — A viewer says they purchased a $100 gift card for “Hair and Body Essentials” in Clifton Park as a Christmas present for a family member, but now the salon has abruptly closed, and customers trying to use gift cards are being met with an “Out of Business” sign on the door.
So what can customers do to try and get their money back?
CBS6 spoke with Tully Rinckey Founding Partner Greg Rinckey, who explained that a gift card is essentially a credit owed to the customer.
Rinckey says if the business still has the financial ability to refund customers, then yes, it may be required to repay that money.
But he warned that if a business files for bankruptcy, customers holding gift cards can become “unsecured creditors,” which can make it much harder to recover the money.
CBS6 also asked about situations where a business may have sold gift cards while already knowing it was about to shut down.
Rinckey says that it can cross into fraud, especially if the gift cards were sold very close to the time the business went out of operation and the buisness knew they were going to close.
Rinckey urged consumers to keep one thing in mind: when you buy gift cards, especially at restaurants or smaller shops, you are taking a risk.
If the business closes, he says, you could be left without any recourse.
CBS6 reached out to Hair and Body Essentials to ask whether customers will be refunded for previously purchased gift cards.
