Less cash for your gift cards

The cash for cards scheme that caused such an uproar across the province last week is still out there, despite one company suspending the program.

Last week, Money Mart came under fire for a pilot program it had launched in some Ontario stores. It was trading unwanted gift cards for cash but only offering half the value of the card.

MPP’s called it a despicable act and said they were taking advantage of the most vulnerable people in society.

As a result of the backlash, Money Mart suspended the program. But CHCH has been doing some digging and found other companies that are still offering the service and advertising an even lower cash return.

Cash Corner says it has been running a cards for cash program for years. The website offers as little as 30 percent of the value of the card but the company says its website is outdated.

Greg Switzer, Cash Corner spokesperson: “Most people get fifty to seventy percent. I think the thirty was just kind of on there as the lowest price, preparation (so that you) don’t get your hopes up that you are going to get a million dollars ”

Critics have called programs like this predatory, saying they take advantage of the poor.

Some say the cash for cards program is especially troubling around the holiday season, many food banks give people gift cards to be able to help people buy groceries. Some are concerned if they are redeeming those for 30 to fifty percent of the value, some kids could go hungry.

In fact, an ex-employee of Cash Corner, who did not want to go on camera, told CHCH News that she saw this being done numerous times with cards handed out by food banks in St. Catharines.

Community Care Food Bank gives out three-thousand cards at Christmas. Betty Lou Souter, the CEO says she doesn’t think it’s a problem: “Our clients are made aware that the gift cards they receive are redeemable only at the stores only that they are there for. I do not think there is an issue. I cannot find any that have happened.”

Cash Corner has three locations and has no plans to discontinue the program but will work with the food banks to prevent their cards from being traded for cash.

Switzer says: “If the food banks could mark their cards somehow.”

But one MPP is looking to stop the practise all together.

MPP Bramalea-Gore-Malton Jagmeet Singh: “The motion that I am bringing forward that would require the government to take action to bar exorbitant exchange rates.”

Money Mart sells the gift cards back to the original retailer. But Cash Corner says it doesn’t do that. The owner and employees use them apparently.