MAGNOLIA

CLIPPING SERVICE

(!rol) 8*0911 I (205) 758-8610

LELAND PROGRESS

LELAND. MS

Circuld.tlOn =704­
WEEKLY
0712312009
11111111111111111111111111111 iI111111

What to do
about Bankrupt
Retailers "1 <'(, C'
Ridgeland, MS, July 21,
2009 As a result of the
declining economy. an
increasing number of retailers
are closing their doors and
leaving shoppers confused and
concerned. "Shoppers are left
wondering what will bappen
to goods they baven't
received, gift cards, and out­
standing warranties," said Bill
Moak, Prcsi\ienllCEQ..oC1be
Bett€fl!itsi!l!'ss Bu.!<'au (BBB)
Semng Mississippi. "'The fol­
lowing is some advice that we
offer to consumers if a retailer
files for Chapter 7 bankrupt­
cy,"
Goods or services due.
Unfortunately, under bank­
ruptcy laws, consumers are at
the back of the line regarding
benefits. Normally any gains
from the sale of company
assets go first to paying hack
secured creditors and employ­
ee wages, Customers who paid
with credit cards, however,
may be able 10 dispute the
chargc with the credit card
company and get their money
back, Those paying by dehit
card or cbeck will have to file
a claim with the bankruptcy
court.
Warranlies, Validity of out­
standing warranties is differ­
ent in each case, If a manufac­
turer goes out of business,
consumers may be able to rely
on warranties provided by
retailers. Many extended war­
ranties and service plans are
provided and administered by
third parties, and they typical,
Iy are not affected by retailers
going out of business.
Gift cards. Under Chapter 7
bankruptcy, the consumer
must file a claim and @neral­
Iy will receive part of the
value of the card back. Iu
Chapter II situations, the
courts make decisions on
whether the business must
honor gift cards or gift certifi­
cates
"Sometimes retailers have
wooed new customers by
accepting a bankrupt competi­
tor's gift cards. Our advice in
these cases is for the consumer
to redeem these cards as soon
as possible," said Moak.
The BBB has been serving
Mississippi consumers and
businesses since 1964. The
reliability of companies can be
checked online at
www.ms.bbb.org or by calling
SOO-987-8280,