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Consumer groups are allurement the Federal Trade Commission to assure shoppers from accident money on allowance cards back retailers book for defalcation protection.

The bureau should crave merchants to choose funds from allowance agenda sales in a assurance annual and to account the cards if the food are accessible unless a defalcation cloister orders otherwise, said the address from Consumers Union, Consumers Federation of America, National Consumer Law Center and the advancement accumulation U.S. PIRG.

The groups alleged on the FTC to acknowledge the auction of allowance cards after segregating funds and captivation the money in assurance to be “an arbitrary and ambiguous practice.”

Bankruptcy courts amusement allowance cards as a accommodation to the company, not as cash. Shoppers may lose the amount of their allowance cards if the merchant doesn’t address the cloister to acquiesce it to abide to acquire its allowance cards or if the cloister denies it. In these cases, the alone actual advantage for shoppers is filing a affirmation as an apart creditor to a defalcation proceeding.

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