A Labour MP complained that the law for customers does not protect them well enough when talking about gift vouchers.
Some high-profile chains such as HMV and Jessops, Michael McCann also joint the opinion that this law should give customers more rights in cases when retailers go out of business.
Nowadays usually the administrators of the firms decide on their own whether or not to give their clients any compensation when their firms collapse because they are considered as unsecured creditors and law does not reach them.
HMV changed their politics not to honour vouchers and Jessops said that in almost no way their vouchers will be redeemed.
According to Mr. McCann the law is too old and does not relate to the nowadays £4bn gift card market.
While introducing a Bill to the House of Commons, he mentioned the decision of HMV and said that other big names should also follow its example.
“The law in relation to insolvency does not seem to provide any protection at all and my aim is that, with this bill, we will strengthen the rights of consumers in this area so that… consumers are not left high and dry or at the mercy of administrators in deciding whether or not to honour the commitments entered into.”
In his words most of the retailers do not stop selling vouchers even when the “writing is on the wall”.
In a speech a spokesman for the Department of Business announced that even if they have “great sympathy” for the people who are not able to unable to redeem vouchers, “there are no current plans to amend insolvency law”.
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