Gift card holders must be protected, says MP

Penny Mordaunt MP
Penny Mordaunt MP
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PENNY Mordaunt has called for better consumer protection for gift card holders following a number of high-profile retail collapses.

The Portsmouth North MP led a debate in Westminster Hall.

She said that, in the event of a company administration, gift card holders should not be classed as creditors at all – that gift cards should be seen as a pre-payment for goods.

Responding to Ms Mordaunt, consumer minister Jo Swinson MP looked for an industry-led answer, ahead of the upcoming debates on the Consumer Rights Bill.

She cited the already-used e-money regulated products like the Post Office One4all Gift Card, and an industry-led code of practice as possible solutions.

Michael Dawson, CEO of multi-retailer gift card provider Post Office One4all, said: ‘Regulated products bring clear benefits to consumers, giving them the reassurance that they won’t be left out of pocket in the event of a retailer collapsing.

‘In a sector that is worth over £4.5bn, we want to encourage the industry to move to a higher standard of protection for consumers and strengthen consumer confidence in the sector.’