Gift checks to bounce, company bankrupt

HOLLAND, Mich. (WOOD) - Local chambers of commerce are scrambling to find a solution to gift checks that are now worthless.

Ohio-based CertifiCheck filed for Chapter 7 bankruptcy on Friday. CertifiCheck had contracts with a number of West Michigan chambers of commerce, supplying gift checks that can be redeemed at local merchants.

The Muskegon Chamber of Commerce is telling member businesses not to accept the checks because they will not be able to be cashed due to the bankruptcy.

Local First in Grand Rapids also worked with CertifiCheck. Officials announced Tuesday their blue and white gift certificates signed by CertifiCheck can no longer be used, but the coupon books the group sold are not affected.

Local First is not sure how many checks are in the Grand Rapids area, and is hoping those who purchased them will e-mail Local First at info@localfirst.com.

The Holland Chamber of Commerce announced Monday businesses would still accept the checks, known in the city as HollanDollars. The chamber will then reimburse the businesses to cover the checks. The chamber says it has enough money in its own funds to cover the loss.

You will know who accepts HollanDollars by looking for stickers in business windows.

"It's a great way to keep local money in the community. We always support the program," said David Jurgensen of the Curragh Irish Pub.

Local businesses say they see their fair share each week, especially the past few months.

"A lot of times the employers, some of the regional employers, will give them out as Christmas bonuses, Christmas gifts. So we'll see an influx of those in January, February," said Tom Lokers of Lokers Shoes.

Jane Clark, president of the Holland Area Chamber of Commerce, says more than $3 million in checks have been purchased in the area since 2001. It's good business for local shops. That is why they will take the expected $108,000 hit -- money that will be covered through a rainy day fund.

"Even though there was a third party vendor, people bought these because they trusted the Holland Area Chamber of Commerce. And that trust is so precious that we didn't want to violate that," said Clark.

"It's really hard for us as a restaurant or merchant to have to tell somebody that their certificate is worthless," says Jurgensen. "We're on the front line and I hate to do that to somebody."

So now they won't have to. They get the revenue and happy customers.

Clark says they plan to file a claim in bankruptcy court to try and recover some of that money. But she is just not sure how much if any will be recovered.

From the CertifiCheck Web site :

Due to an extremely difficult economic environment, CertifiChecks, Inc., has ceased operations, effective immediately. CertifiChecks will no longer administer gift certificate programs. CertifiChecks gift certificate sales have been halted. CertifiChecks is in the process of filing Chapter 7 bankruptcy in Dayton, Ohio.

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 you would like to submit for potential reimbursement, please remit to the address listed below -

CertifiChecks, Inc.
Attn: Redemption Dept.
PO Box 13603
Dayton, Ohio 45413

Respectfully,

The CertifiChecks Team