With this holiday season being the "make or break" point for many retailers (some, like Circuit City are more "break" than "make"), the California DCA has published a few tips that could be useful if you'd like to make the most out of the holiday bargains without the risk of getting ripped off.
Some highlights:
-- Use a credit card and you'll be better protected if a store goes out of
business. If you are billed for merchandise you haven't received,
notify your credit card company in writing immediately.
-- If you pay cash for all or part of a purchase and the store files for
bankruptcy protection before you get your merchandise, you probably
have become an "unsecured creditor" of the store. You may lose some or
all of your payment.
-- If you hold a gift certificate from a store that files for bankruptcy,
the gift certificate may have no value. However, you may have a claim
against the bankruptcy estate.
-- As a consumer creditor who has paid for goods never received, you're
ordinarily an "unsecured creditor." Among unsecured creditors,
consumers are sixth in priority for claims of up to $2,100. Higher in
priority, for example, are store employees seeking unpaid wages.
And my personal favorite....
-- Look for
a warranty on the product that's independent of the retail
store. If the store goes out of business, the manufacturer's warranty
may be all that's left to back the product. Inspect warranty documents,
fine print and all. Also, consider the quality track record of the
manufacturer. (Ahem...
SquareTrade)
Read the full list of DCA tips. It could save you a huge headache in the future.