SOUTHINGTON - Customers stuck with unusable gift certificates are frustrated, not only with the wasted dollars, but with the inability of agencies to provide any help to recoup their money.

Gift cards for two restaurants in particular, 25 Center Street and Emilio's Italian Restaurant, have prompted customers to call the Greater Southington Chamber of Commerce and the state Department of Consumer Protection to seek assistance with their gift cards.

Ann Manware said she and her husband received a $100 gift certificate for 25 Center Street for their 50th wedding anniversary earlier this year, and were shocked to see the restaurant close recently.

"I was just there for dinner a couple weeks ago. There was no indication that it was going to be close," Manware said. "It is a shame. It's a nice restaurant. The food was very good."

Manware contacted chamber of commerce President Art Secondo to see what they could do with their gift card. Secondo said he has been receiving many similar calls from people and was kind of embarrassed that there is not much that can be done.

"The frustrating thing is the state doesn't have a formal policy on this," Secondo said. "We contacted the Department of Consumer Protection and they basically said there was nothing we could do."

Secondo said they have been helping people contact Consumer Protection, but were told in most cases the investigations will not result in consumers getting money for the cards.

Consumer Protection Commissioner Jerry Farrell said the department frequently get calls and letters from people on gift card issues, but what they can do is limited by federal bankruptcy laws superseding state laws and gift card laws that do not account for businesses that close without going bankrupt.

"We always deal with gift card issues. There is no great

solution to the situation," Farrell said. "There is no guarantee fund for holders of gift cards like there are for other kinds of industries."

He said consumers can make a claim in bankruptcy court, but most will not go through that kind of trouble for a $25 gift card, so they instead call Consumer Protection for help.

"Everything that comes here, we try to do something with. Even if it is just making a telephone call on their behalf," Farrell said. "Sometimes it is just as frustrating for us as it is the consumer."

Secondo said some people complain that they bought gift cards at 25 Center Street as recently as Nov. 20, about a month before it closed. When the date of the gift card sale is close to the date the business closes, Farrell said people try to allege fraud on businesses by saying the owners were selling gift certificates while knowing they were going out of business.

"You would have to get into that person's mind to know for sure. How do you do that?" Farrell said. "We have found there is never that kind of smoking gun, in all of our investigations. You wish you would find it, because you could add the criminal element to it."

Thomas Sharp, the owner of 25 Center Street, did not

return phone calls Tuesday.

While 25 Center Street closed its doors, leaving only a sign that says "Thanks for the Memories," Emilio's Italian Restaurant was under new ownership as of May and are not honoring gift cards from the previous owner.

Emilio's owners could not be reached for comment Tuesday. A consumer complaint says it is unfair that the new owners profit from the prior owner's reputation, but do not honor the gift certificates purchased under the same name.

The consumer said the owner told him he will not honor the cards because they do not know how many are out there. Farrell said this is fairly common. He pointed to a restaurant in Hartford that changed owners but would not honor former gift certificates because they suspected more than $100,000 of them were sold.

Secondo hopes Blumenthal will go forward with plans to clear up the issues with gift cards, as he suspects there will be more businesses closing due to the downturn in the economy.

"I think there a lot more of them out there," Secondo said. "I think Blumenthal is going to pound down on it."

In November, Blumenthal issued a press release warning consumers about buying gift cards from businesses such as Linens n' Things or Sharper Image, because of their financial state.

"In light of staggering consumer losses ... I will propose and advocate legislation requiring retailers to establish a special, separate account for money from purchases of gift cards, so the money can be held in escrow," Blumenthal said in a Nov. 28 press release.

Blumenthal encouraged giving cash instead of gift cards

when possible.

Manware said that when she was buying gift cards during the holiday season, businesses were picking up on consumer skepticism and assured her they would remain open.

rrathsack@record-journal.com

(203) 317-2227