Company changed name and didn't fulfill orders from previous company

[kuromi]

What is the name of your state? WA

I purchased a number of store gift cards from an app. They include various brands such as Gamestop, Lowe's, Uber etc.

The app has been working for years, I have been using since 2018 or so. They were a legitimate company.

Suddenly sometime in October last year, they quietly stopped fulfilling orders. All the gift cards I previously purchased can no longer be opened.

I filed complaints with BBB, California AG and Washington AG, the company never replied. BBB shows that there are many others on the same boat.

After some research, they actually created a new app with same interface, same office location, and even the same CEO.

They are intentionally doing this to scam more people. I am out over $2000 in undelivered gift cards. I sent them a demand letter by USPS certified mail, and they cleverly returned it to sender.

What is my best option now? Small claims or find an attorney to start a class action?

 

[doucar]

How much are you willing to spend to maybe get your money back?

 

[quincy]

What is the name of your state? WA

I purchased a number of store gift cards from an app. They include various brands such as Gamestop, Lowe's, Uber etc.

The app has been working for years, I have been using since 2018 or so. They were a legitimate company.

Suddenly sometime in October last year, they quietly stopped fulfilling orders. All the gift cards I previously purchased can no longer be opened.

I filed complaints with BBB, California AG and Washington AG, the company never replied. BBB shows that there are many others on the same boat.

After some research, they actually created a new app with same interface, same office location, and even the same CEO.

They are intentionally doing this to scam more people. I am out over $2000 in undelivered gift cards. I sent them a demand letter by USPS certified mail, and they cleverly returned it to sender.

What is my best option now? Small claims or find an attorney to start a class action?

Have you checked to see if there is a class action already?

 

[zddoodah]

All the gift cards I previously purchased can no longer be opened.

I'm going to guess about what "can no longer be opened" means. If I'm wrong, please say so. I take it these are not physical gift cards and that you never printed copies or saved them to any device of your own. Instead, I assume they were saved only on a server maintained by the owner of the app. Correct? If so, that's horribly foolish.

I filed complaints with . . . [the] California AG

You tagged this post as relating to Washington, and I assume that's because that's where you live. If that's correct, why did you complain to the California AG? Is it because the owner of the app is located in California?

After some research, they actually created a new app with same interface, same office location, and even the same CEO.

"They" who? You shouldn't name names, but is the business entity that owned the original app the same entity that owns the new app?

They are intentionally doing this to scam more people.

What evidence do you have of anyone's intentions?

I sent them a demand letter by USPS certified mail, and they cleverly returned it to sender.

"They" didn't return it to the sender. The USPS did that - I assume because the recipient never signed for it. That's why sending letters of this sort by certified mail is generally a bad idea.

What is my best option now? Small claims or find an attorney to start a class action?

You're certainly free to see if you can find an attorney interested in pursuing a class action. However, a small claims action would be MUCH simpler and quicker. If the defendant is in California, you'll have to sue there, and your travel costs won't be recoverable.

 

[kuromi]

How much are you willing to spend to maybe get your money back?

I am willing to spend a few hundred to file small claims and my time.

 

[kuromi]

Have you checked to see if there is a class action already?

Good question. How do I check?

 

[adjusterjack]

I purchased a number of store gift cards from an app. They include various brands such as Gamestop, Lowe's, Uber etc.

What was the purpose or the advantage of buying them that way rather than from local stores?

 

[quincy]

Curious: Is the company located in Redwood City?

You can contact an attorney local to you to research the status of the app company.

Note to AJ: Some large retailers have had problems with fake cards.

 

[doucar]

I am willing to spend a few hundred to file small claims and my time.

Filing small claims in California is less than a few hundred dollars. but travel expenses for 2-3 trips minimum to California is not, nor will your attorney's fees, should they remove it to Superior court by appeal or otherwise.

 

[kuromi]

Thank you for your detailed response. I appreciate your help.

I assume they were saved only on a server maintained by the owner of the app. Correct? If so, that's horribly foolish.

You are correct. These were stored on their server. It is my mistake that I did not save them all. I used a number of my gift cards, but not all of them.

Is it because the owner of the app is located in California?

Yes the company is located in California

"They" who? You shouldn't name names, but is the business entity that owned the original app the same entity that owns the new app?

I cannot tell if they are legally the same business entity, however on App store and Google Play the 2 apps belong to the same developer. And the new app has a contact email that points to the old app domain.

What evidence do you have of anyone's intentions?

I don't

"They" didn't return it to the sender. The USPS did that - I assume because the recipient never signed for it. That's why sending letters of this sort by certified mail is generally a bad idea.

It is because they refused to sign for the certified mail. What is a better idea if I proceed with small claims? I mailed it to their address listed on Secretary of State.

You're certainly free to see if you can find an attorney interested in pursuing a class action. However, a small claims action would be MUCH simpler and quicker.

My concern with small claims is that I don't have a way to collect from them, even if I get a judgment.

 

[kuromi]

What was the purpose or the advantage of buying them that way rather than from local stores?

They have different brands on sale occasionally. Similar to gift card sales from grocery stores.

 

[quincy]

California Small Claims:

https://selfhelp.courts.ca.gov/small-claims-california

 

[kuromi]

Curious: Is the company located in Redwood City?

No, they are in SD area. I can reveal the company name if interested.

You can contact an attorney local to you to research the status of the app company.

How much does that cost and what do I ask them to research for?

 

[kuromi]

California Small Claims:

https://selfhelp.courts.ca.gov/small-claims-california

I have read that already. I started by sending a demand letter by certified mail, which they refused to sign.

 

[kuromi]

Filing small claims in California is less than a few hundred dollars. but travel expenses for 2-3 trips minimum to California is not, nor will your attorney's fees, should they remove it to Superior court by appeal or otherwise.

Small claims should be decided in 1 hearing I think?