Gift-certificate firm collapse could sting local consumers
6:34 PM Fri, Mar 06, 2009 | Permalink
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Some Rhode Island merchants and consumers who were trying to support the local economy may get stung by the collapse of a national company that generated gift certificates for business groups and corporations across the country. CertifiChecks Inc., based in Dayton, Ohio, has filed for Chapter 7 bankruptcy and has not indicated if it will honor the certificates it issued to shoppers, big companies, chambers of commerce and the military. The company operated in 47 states. How much money holders of the unredeemed gift certificates stand to lose has not been calculated, according to an Associated Press report. In Rhode Island, the South Kingstown Chamber of Commerce is one of those affected. According to its Web site, the Chamber offered CeftifCheck gift certificates in $5, $10, $25 and $50 denominations for use in hundreds of South County businesses, including restaurants, retail stores, grocery markets and service businesses. Lisa Roy, interim executive director of the South Kingstown Chamber, did not return repeated phone calls.
Larger chamber of commerce organizations in the greater Providence, Warwick and Cranston areas said they were aware of the sudden demise of CertifiChecks, but have not been offering such certificates. Other chambers -- including Newport County, East Greenwich and North Kingstown -- said they do have region-specific gift certificates but are not affected because they did not use CertifiChecks. A brief message on the CertifiChecks Inc. site does not guarantee that the certificates will be honored. "Due to an extremely difficult economic environment, CertifiChecks Inc. has ceased operations, effective immediately," it states in part. "Do not deposit CertifiChecks Gift certificates in the bank as they will be returned. Merchants: Please remove all door and register decals. "If you have CertifiChecks gift certificates which would you like to submit for potential reimbursement, please remit to . . . CertifiChecks Inc. Attention: Redemption Dept., P.O. Box 13603, Dayton, Ohio, 45413. Deborah Kelso, director of the Narragansett Chamber of Commerce, said her businesses might be slightly affected because even though the chamber did not sell the gift certificates directly, its Web site did offer a link to CertifiChecks for shoppers who wanted to buy certificates honored by locally. Kelso and other chamber officials across the state said that CertifiCheck's failure is distressing in a tough economy and could wrongfully undermine consumer faith in similar programs that have been a boon to local shopping areas for years. "I have one word," Kelso said. "Disheartening." 
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