Retailer says funds on reward cards cannot be redeemed and refunds or exchanges are no longer available for goods
Game Group has announced it has suspended its gift card and loyalty card schemes after going into administration. The gaming chain, which also includes the Gamestation brand, said it would not be able to offer refunds or exchanges for products – even those purchased before it went into administration on 26 March.
The retailer also said it expects "some disruption to our online services over the next few days", and confirmed that it would not be accepting new pre-orders until further notice and is also refusing to offer refunds for pre-order deposits. In an official statement posted on Facebook, the firm said it would be "reviewing this over the next week".
Game Group, which has appointed MJA Jervis and SD Maddison as joint administrators, said it had suspended the use of its GAME Reward Cards (points can be earned but not redeemed until further notice), its GAMEWallet accounts (including any balance left in the wallet) and its GAME gift cards.
The company statement said: "The value on these cards cannot be redeemed. If this changes, we will let you know. We apologise for the inconvenience this causes."
Customers took to Twitter to express their shock at the decision to immediately close at least half of the group's 600-strong GAME and Gamestation stores, including the flagship Birmingham outlet. There was one report of angry customers hitting the doors of a closed Gamestation, with the police reported to have been called.
Game Group said anyone requiring assistance with an existing order should contact its customer service team by emailing: customerservices@game.co.uk.
Shoppers' rights have been under the spotlight at a succession of troubled retailers in recent months. Gift chain Past Times went into administration with the closure of 46 stores and the loss of 574 jobs in mid-January, while children's clothing retailer Pumpkin Patch, clothes retailer Peacock, and lingerie specialist La Senza all called in the administrators.
Concerned consumers should also read our Q&A on gift vouchers and may find the following helpful:
Are all gift vouchers worthless if a company goes into administration?
It depends on the administrators that take over the company. Vouchers tend not to be accepted and those in possession of a voucher would need to lodge a claim with the administrators and hope for the best.
I bought vouchers using a credit card. Am I protected?
Buying with a credit card does usually offer you extra protection when a company goes bust, assuming you have spent more than £100. The part of the Consumer Credit Act (1974) known as section 75 means your credit card company is "jointly and severally liable" for any breach of contract or misrepresentation by the company you have bought through – so the card company would pay out on your claim.
However, the situation with vouchers is more complicated, and the Financial Ombudsman Service says vouchers have not yet formed the basis of a claim on which it has had to rule. The situation does appear to be that if there is no third party involved then you could be effective in making a claim.
So, if you buy vouchers directly from a store to spend in that store you would be entitled to your money back if that store went bust (remember, this only applies if you've spent more than £100 using your credit card). However, if you used a third party such as a website that sells vouchers on behalf of a number of stores, you could not make a claim.
Check out our factsheet on using Section 75 and the Chargeback facility for more information.
My vouchers don't have an expiry date. Can I use them whenever I like?
Don't assume that because you can't see an expiry date on a voucher or gift card that it doesn't have one. Some, such as those from John Lewis, have no expiry date. But others do: gift cards for Amazon.co.uk, for example, expire one year from the date of issue, while Marks & Spencer gift cards are valid for four years, although each time a customer spends on the card the expiry date is reset to four years. Check individual terms and conditions.
Can I use vouchers on a retailer's website as well as in-store?
No, not always. H&M, for example, won't let you use its cards online, nor will Topshop. On the other hand House of Fraser will, but its gift vouchers come with other conditions – they cannot be used to "purchase white goods, large kitchen appliances, Bivolino custom-made shirts and Montgomery made-to-measure curtains, accessories and fabrics".