House of Fraser customers denied refunds and still waiting on gift card replacements a MONTH after chain was saved by Sports Direct
FRUSTRATED House of Fraser customers are concerned they've been left out of pocket after waiting more than a month for the retailer to replace their gift cards.
Shoppers' worries come just days after the retailer backtracked on refunds for orders that never turned up.
Despite the last minute rescue on August 10 by billionaire businessman Mike Ashley, the department store announced that it had stopped accepting gift cards even though it was still selling them.
Instead, it advised customers to send the vouchers into head office in exchange for a replacement from the new owners, Sports Direct.
But concerned customers claim they haven't heard anything from the retailer since posting their gift cards and fear they won't ever see the money again.
Some customers have returned cards with more than £100 on them weeks ago and are still waiting for communication from the store to say that they have received it.
When a firm goes into administration they are not actually legally obliged to honour gift cards.
If House of Fraser decides not to replace them then affected customers will have to join the long list of companies that the firm owes money to.
Banks and investors will get a pay out first, so customers who are owed cash for gift cards are unlikely to see the money again.
It comes just a week after the firm made a u-turn on promises to refund all customers who suffered as a result of cancelled online orders.
The retailer took its website down and deleted thousands of customers' orders on August 16, amid an ongoing row with its warehouse operator over pay.
At the time, it said it would automatically issue refunds for orders that weren't been processed but a spokesperson has since told that it wouldn't be paying back customers who placed orders before August 10.
Sports Direct argue that this is because these orders were made with the old owners and customers will need to speak to administrators if they want a chance of getting their money back.
What are your rights with House of Fraser giftcards, refunds and online orders?
HERE are your rights if you're worried about your House of Fraser order:
Giftcards:
Sports Direct is not clear on where it stands with giftcards and has said that it accepts no liabilty for House of Fraser ones that have already been issued.
But it also advised customers to send them in to the firm's headquarters in exchange for a replacement.
If you do send it off, make sure that you take a picture of it before posting because you might need it as proof if anything goes wrong.
Make sure you include your name and return address and get proof of postage - although you're unlikely to be refunded for any postage costs.
Orders and deliveries:
House of Fraser has cancelled all online orders and said that it will be refunding customers who placed orders after August 10.
If you ordered from the retailer before August 10 and never received your delivery or a refund then you will need to contact the firms administrators, EY.
You will need to form explaining why you feel that you are owed money and how much.
You will then be added to the list of creditors the company owes money to - but be aware that big banks and investors will received a pay out first, so there may not be enough cash for your refund too.
Refunds:
If you still haven't received your refund, you should let the retailer know that you want your money back in writing and send it to House of Fraser, Customer Services Department, 3/1 Granite House, 31 Stockwell Street, Glasgow, G1 4RZ.
If you've paid extra for special delivery then you are also able to claim a refund for the service.
You can try and get your money back from your card provider.
If you paid for your order by debit card (or by credit card and the cost is under £100) then you should be able to claim under chargeback rules.
Ask your card provider - likely your bank - to submit a chargeback and it will request your money back from House of Fraser. You must do this within 120 days.
After eight weeks, you can also escalate the problem to the Financial Ombudsman.
Shoppers who paid for the gift card using a debit or credit card can try to claim the cash back.
If it was over the value of £100 and you used your credit card you can try submitting a Section 75 claim via your credit card company.
If you bought a gift card on your debit card or the amount was under £100 you can submit a charge back claim.
Martin Lane, Managing Editor of said: "Surely the last thing you want to do when you buy a new company is anger the very people who are going to be your customers. This seems really short sighted of Sports Direct boss Mike Ashley.
"He's not under any legal obligation to refund customers because House of Fraser went under before he bought the brand, but you'd have thought he'd want to keep the relationship with its customers positive."
The Sun has contacted House of Fraser for comment.
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Like other retailers, House of Fraser has struggled over the past few years as stiff competition from online rivals and a slump in consumer spending have knocked the firm.
The future of Debenhams also hangs in the balance after the it called in advisers to help save the chain.
The embattled department store chain is fighting to keep its 240 stores open following a sharp fall in profits and tumbling share prices as consumers turn to online shopping.
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