Jack in the Box gift card fraud!
Jack in the Box gift card fraud. Beware when redeeming your gift card for cash.

A blog about Food & Eating, Kern County, and News.
About ScottyJ


Member Since:
December 02, 2007
Last Signed In:
December 30, 2008
Profile Views:
13
Blog Views:
929
View Profile
Send a Message
Send To A Friend
Sign Guestbook
Add as a Friend

Previous Posts
Jack in the Box Fraud!
Archives
December 08
January 09
February 09
March 09
April 09
May 09
June 09
July 09
August 09
September 09
October 09
November 09
Subscribe!
RSS 2.0 feed RSS 2.0
Add to My Yahoo
Add to My Google
Add to Bloglines
Add to My AOL

Share!


ScottyJ - > Jack in the Box gift card fraud! -> Jack in the Box Fraud!
Jack in the Box Fraud!

Attention Bakersfield!  Beware of Jack in the Box.  If you recently purchased ,or received as a gift, a JACKCASH gift card, then beware when trying to cash it out when you have less than $10 remaining on your balance.  According to California law, passed in early 2008, any gift card with less than $10 can be redeemed for cash.  That is, unless, you are trying to recover it from Jack in the Box.  I was refused to cash out my gift card by two local Jack in the Box restaurants when I tried to cash out the remaining $1.53 left on my card.  I know, it seems like such a little amount, but this is a multi-billion dollar industry and we are being scammed.  You have the right to cash out any gift card with less than $10 remaining on it from any store, restaurant or business.  Do not let them lie, or get away with keeping your money.  I hope and pray that this story is picked up by local media, or that the citizens of this county stand strong.  It's your money, not theirs.  Please report any abuse to local media, local law enforcement, or any other avenue you deem appropriate.  Sincerely, ScottyJ  "A concerned citizen!"

Addendum...

I was mistaken concerning the law and gift cards as they pertain to food products.  I must apologize, here is the law as it stands...

Update: Beginning January 1, 2008, California law requires merchants to provide cash back to the purchaser or holder of any gift certificate with a balance less than $10.  (This is a retro law that governs all gift cards issued back to 1997, providing they fall under the appropriate jurisdiction of this law.)

The bad news is the law, as always, has several loopholes.

The biggest of these loopholes is that if the card can be used to buy goods or services from multiple unrelated stores, such as an American Express™, MasterCard™, or Visa™ gift card, that card is not covered by the California law. Luckily, federal law governing nationally chartered banks requires that such cards prominently display any expiration date on the front of the card, and the fact that there is a monthly fee and how to obtain additional information (by providing a toll free number or website address, for example) on the back of the card.

The second biggest loophole is that while gift cards cannot have an expiration date, they can have a redemption date, which is a date by which the recipient of the card must use it. What is the difference, you may ask? Well, a seller that chooses to put a redemption date on a gift card must give the purchaser a full refund of the amount paid for the card if the recipient does not redeem it by the redemption date. So at least you haven't just thrown your money away if the recipient of your gift is a little slow.

The third biggest loophole is that while gift cards cannot charge a service fee, they can charge a dormancy fee for non-use. Again, the difference? Well, a dormancy fee can only be charged if:

  • the value remaining on the gift card is $5.00 or less; and
  • the dormancy fee is $1.00 per month or less; and
  • the card has been inactive for 24 consecutive months (for example, no purchases, "reloading," or balance inquiries); and
  • the holder may reload or add value to the card.

The card must contain a statement in at least 10-point type stating that the fee is triggered by inactivity, the amount and frequency of the fee, and at what point the fee will be charged. This statement may be on the front or the back of the card, but it must be visible to the purchaser prior to purchase. So at least you know what you're buying before you buy it.

Finally, the California law doesn't apply to prepaid calling cards, cards distributed to consumers without charge under an awards, loyalty or promotional program; cards sold below face value at a volume discount to be used for fundraising purposes if the expiration date is 30 days or less after the date of sale; or cards issued for food products or grocery items.

As you can see, I was wrong, Jack in the Box has no legal responsibility to follow this law due to the fact that they sell food products.  I would like to thank Jack in the Box for responding to my email and I would like to let you know that they have decided to honor California law and give consumers the option to cash out their JACKCASH gift cards when the balance is $10 or less.  I believe they have already started training, for their employees, on how to refund the cash, per my discussion with a JIB corporate spokeswoman.  I was told by corporate, that here in Bakersfield, namely, at the JIB on Chester and Columbus, the training has already been completed.

Although I was wrong, a change of policy took place.  It's amazing what can happen/change in this world when we put a little effort in to it. 

Additionally, I wonder what would have happened if I had used my gift card to purchase the Jack in the Box antenna balls.  Clearly they are not food, and I wonder if I would have still been denied the option to cash out my gift card, but because Jack in the Box took my complaint seriously, I guess the point is mute.

Best Wishes and Happy New Year, ScottyJ

P.s. "theColorNine, don't give up.  Email and/or call Barnes and Noble corporate HQ.  Don't give up.  Additionally, email/call the Department of consumer affairs. 

I read the above article, and unless your gift card was a Visa/MC/American Express you should have a fair claim.  Also, I believe Jack in the Box took me seriously because I threatened to go to the local media.  By the way, they were definitely concerned that I understand their policy had changed and that I could now get my money.  They specifically asked me if I had contacted the media yet.  To their relief, I let them know that I had turned down CH. 17 for an on air interview.  Which is the truth.  Fight on Kern County!!!

P.s.s.  "Shwaine"  Props go out to Petsmart.  If only all business would post the law, giving both consumer and employee a chance to be informed and educated as to their rights.

Posted in the Food & Eating interest group.
Topics: bakersfield, local, restaurants, food, gift cards
posted by ScottyJ on Friday, December 26, 2008 at 07:36 PM
Report a Violation
Viewed 929 times
6 comments from 5 users

1

posted by antiextremism on Dec 27, 2008 at 04:23 PM

I hear Jack's puttin' pressure on his rivals too. I think there's gonna be catsup flowing in the streets soon if this policy gets momentum....

281736780 9B673093Bd

 

posted by proam on Dec 27, 2008 at 06:40 PM

ScottyJ, Thanks for the info. I was not aware of this. Consumer advocate! We all need to keep each other abreast of this kind of thing when we learn of it ourselves. $1.53 here $1.02 there all adds up quite handsomely for the corporations. We all hate being taken advantage of.


posted by theColorNine on Dec 30, 2008 at 09:11 AM

You can add Barnes & Noble to the list of establishments that won't give you back cash for a gift card balance under $10.  I was there last night.  We spent over $150 on books and stuff using numerous B&N gift cards that we've accumulated.  At the end of the transaction, one card had $9.59 left on it.  When I asked the clerk for the change in cash, this young guy said they only give cash back if it's less than $1.  I told him it was the law to give cash back if requested by the customer for balances under $10.  He kept telling me "No."  Meanwhile, I get the feeling my family is standing behind me thinking "Here goes Mom again..." The clerk eventually offered to get the manager, which in retrospect I should have insisted upon, but I was tired and annoyed that this kid had been so defiant initially with his lack of customer service attitude that I just said forget it.  Besides, if the clerks have been mistakenly trained on the law, why should I think the management knows any differently?

 

By the way, does anyone know what legal authority we would contact to report business who don't honor this law?

posted by Lingtaowoo on Dec 30, 2008 at 09:27 AM

Kinda takes the spirit out of giving.....what will they think of next.....


posted by Shwaine on Dec 30, 2008 at 05:51 PM

For a flip side report, Petsmart on Ming Ave (not been to the East Hills one lately) has a sign clearly displayed at each register stating one's rights to receive the balance on a gift card if the card balance is below $10. So at least some merchants are treating the law appropriately.

posted by theColorNine on Dec 31, 2008 at 09:38 AM

Thanks for the update, Scotty.  It was very informative.

In our case, all of the gift cards we used were issued by B&N, so I think the law was on my side that night.  I have printed out the code section of the law and carry it with me in my purse now, in case I ever have this situation come up again.

We still have a couple of $25 B&N gift cards plus the one with the $9.59 balance left on it.  I don't mean to sound ungrateful, but I wish the relatives would lay off giving the kids those cards every year for Christmas and their birthdays.  A little variety would be nice for the kids' sakes.  We will probably use the gift cards online, and after that we'll patronize Borders (which I think is a nicer store with better selection anyway) or Russo's.

1

  (You need to be signed in to leave a comment)

Advertisement