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Gift Card Rescue Bankrupt
Last year I did my best to warn everyone about Gift Card Rescue. After a popular deal, many people including myself decided to sell cards to the company. Then, after the cards were sent in, Gift Card Rescue demanded more information from sellers and informed them that their cards would be forfeited if they didn’t comply.
I didn’t receive such a message, but it still took me more than a month to get paid for the cards that I sold. They lied about sending out a check that never came, before eventually sending out a check after I harassed them constantly and used this blog to shame them. My takeaway from the Gift Card Rescue selling experience was that they are both dishonest (i.e. they say they mailed a check when they haven’t) and probably broke. I guess I was right.
A Sad Notice
Will Run for Miles is reporting that the company has now gone out of business. After sending out a letter to sellers (victims) saying that all payments were temporarily frozen as of 7/12/16, the following letter sent from the company’s CEO today brings even worse news:
You are receiving this letter because you or your company sold gift cards to GiftCardRescue.com recently and are awaiting payments on those gift cards. Unfortunately, I regret to inform you that GiftCardRescue.com has closed down effective July 15, 2016. Our company was forced to shut down last week when a lender to the company (with whom we have been trying to negotiate a temporary forbearance) went to court and got a judgment against our company. With that judgment, they placed a hold on our business bank account, depleting all the funds in our account. Without access to our operating account, we had no choice but to
shutdown.. . .
As soon as it became clear we could no longer operate, we stopped accepting new gift cards and have since returned all unprocessed gift cards to the respective suppliers. . .
I am sure you are wondering what will happen to the debt owed to you by GiftCardRescue.com. While I have pursued all efforts to find a way to pay the amounts owed to you, or to have another company in the secondary gift card industry assume and pay the obligations owed to you as part of a transaction, at this point my efforts have not been successful. If this circumstance changes, you will receive further communications to ensure you are properly advised. . .
I would like to thank you for trusting us with your business and regret that we were not able to send you payment for the cards you sold to us.
Additionally, their website does have the following message:
Buying and Selling of Gift Cards on GiftCardRescue.com is temporarily not available. We will provide an update soon. We apologize for the inconvenience.
What to Do?
I am not a lawyer so I cannot give any advice, but personally I might consider checking the balances on any cards sold to Gift Card Rescue. Of course those cards may have been sold to buyers and I have no idea as to who owns the funds in such a situation. Perhaps a lawyer could help, but either way it isn’t looking good if you decided to sell to this company and have yet to receive your funds.
Have you had any dealing with Gift Card Rescue recently? Feel free to share your experiences in the comments!
Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.