Never a problem for me

One of the few upsides to being a continually broke spendthrift is that I never have to worry about this happening.

Scott Sistek of Mukilteo, Wash., saw the value of his Visa gift card melt away when he put it in a dresser drawer and forgot about it for about a year. He was “shocked” to learn the $50 card was only worth $26.50. After a grace period, the bank charged him a monthly maintenance fee of $3.50. Plus, Sistek was dinged $2.50 when he called to check on the balance.
I've given and gotten my share of gift cards over the years, and I've never had this happen to me, at least on the receiving end--that thing is generally spent in a matter of days, not months.

But here's the truly disturbing part of the story to me.
In bankruptcy court, gift card holders are unsecured creditors. They can file a claim, but they go to the back of the line.
I don't understand how this is the case. How are gift cards not the equivalent of cash? The company who issues the gift card gets money up front for them, and it's not like the user is getting extended credit when using it. Gift card holders should be at the front of the line, not the end. What am I missing here?

Newer Post Older Post Home