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

[doucar]

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



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.





Yes the company is located in California


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.


I don't


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.




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

And if they are fly by night, they probably don't have enough assets to interest a class action attorney.

 

[quincy]

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


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

Thanks for answering my question. No, you don’t have to reveal the company name. Because of the distance between your resident state and their location, though, you could find the cost of pursuing a small claims action exceeds any benefit, if you were to win a lawsuit.

You could buy a couple of hours of an attorneys time for research. How much this costs depends on the attorney.

Your app sells eCards from various entities, and also stores cards - both eCards and plastic cards purchased elsewhere?

 

[quincy]

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

Did you send the letter to the registered agent?

 

[kuromi]

Thanks for answering my question. No, you don’t have to reveal the company name. Because of the distance between your resident state and their location, though, you could find the cost of pursuing a small claims action exceeds any benefit, if you were to win a lawsuit.

You could buy a couple of hours of an attorneys time for research. How much this costs depends on the attorney.

Your app sells eCards from various entities, and also stores cards - both eCards and plastic cards purchased elsewhere?

The old app is Bitmo, the new app is HungryFriend. BBB has many complaints for this same matter. https://www.bbb.org/us/ca/carlsbad/profile/gift-cards/bitmo-1126-1000059008/complaints This blogpost also explains what happened. https://gcgalore.com/is-bitmo-shutting-down-its-not-looking-good/

They only sell electronic gift cars which are new, there is no evidence that they are reselling cards from elsewhere.

 

[kuromi]

Did you send the letter to the registered agent?

Yes I did. I found it from https://bizfileonline.sos.ca.gov/search/business. And the agent listed is the CEO of these two apps.

 

[quincy]

Yes I did. I found it from https://bizfileonline.sos.ca.gov/search/business. And the agent listed is the CEO of these two apps.

Okay. Well ... the source of the problem may not be Bitmo but rather the company used by Bitmo to collect financial data from users of the app. That company has gotten itself into some hot water, which has in turn affected to varying degrees several entities using its services.

I read through the Terms and Conditions of use for the Bitmo app and think you could have difficulty recovering your gift card losses. Your best course of action is probably to contact an attorney in your area who can invest some quality time in necessary research, this before you pack your bags for a stay in SD.

In other words, this may not be as easy as filing a small claims suit.

 

[AlmostThere]

And even if you win in small claims court, it will be hard to collect.

 

[zddoodah]

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.

All you did was send a demand letter, right? Unless the app's terms of service require something more particular, just send it by regular mail. You don't need proof of delivery.

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

You have the same ability as any other judgment creditor.

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?

The small claims case will involve only a single hearing. However, any or all of the following could happen:

1. The defendant doesn't show up, you get a default judgment, and the defendant makes a motion to set aside the default. You wouldn't necessarily have to show up for the hearing on the motion, but you'd have to go back for a second trial.

2. The defendant asks for and obtains a continuance at the last minute, which results in you having to change your travel arrangements, potentially for increased cost.

3. You win and the defendant appeals. A small claims appeal works like a brand new case, is handled in the regular (limited) civil division of the superior court, and allows the parties to be represented by attorneys (required in the case of corporations and LLCs).

 

[kuromi]

I read through the Terms and Conditions of use for the Bitmo app and think you could have difficulty recovering your gift card losses.

Why is their T&C related? I checked and it said small claims is allowed.

Your best course of action is probably to contact an attorney in your area who can invest some quality time in necessary research, this before you pack your bags for a stay in SD.

Thank you for digging this through. Why is research by an attorney needed?

 

[kuromi]

And even if you win in small claims court, it will be hard to collect.

Yes I know. That is why I thought about class action instead of small claims.

 

[quincy]

Why is their T&C related? I checked and it said small claims is allowed.



Thank you for digging this through. Why is research by an attorney needed?

Why is research by an attorney in your area necessary? Because I am not sure anyone on an Internet forum is going to take the unpaid time or make the effort to do the necessary research for you.

You can, of course, go ahead and file a small claims suit against the owners of the app in an attempt to recover the gift card amounts missing from your account, without doing any further research. Follow the instructions for filing a small claims suit, serve the complaint, and see what happens.

Please be aware of what you agreed to in the Terms and Conditions of Use. I suggest you reread the agreement on arbitration and class actions.

Also consider, the agreement states: “We reserve the right to close your account at any time for any or no reason” and “The Company reserves the right to modify, update, interrupt, suspend, or discontinue the Service at any time without notice, or liability.” There is also a provision on the company’s limitation of liability.