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Prepaid card woes multiply in Shanghai

By Wang Hongyi (China Daily)
Updated: 2009-03-16 08:43

SHANGHAI: The Shanghai Committee of Consumers' Rights and Interests Protection yesterday urged consumers opting for prepaid cards to be on guard, in view of the rise in related complaints in the city.

The committee said it received more than 4,000 complaints in 2008, up 14 percent than in 2007.

Most of these complaints have to do with beauty and hair salons or fitness clubs that often shut down without notifying their clients, said the commission. The credit remaining on the cards issued by them thus becomes invalid. Besides, when companies change owners or relocate, they often refuse to honor the old prepaid cards.

The committee said the Shanghai industrial and commercial administrative bureau (SICAB) should inspect a business before deciding if it was eligible to offer prepaid cards.

"Consumers should learn more about the card, such as serviceable range and quantity, functions as well as refund-related details. It's better to sign a written agreement with the business," said an official with SICAB, on condition of anonymity. "So far, there are no laws to regulate their operation," he added.

"Many companies that have disputes with customers rely on the prepaid cards as one of their main sources of capital," said Zhao Jiaoli, secretary-general of the commission. "But once the capital chain breaks, consumers will have to suffer the loss. We are urging lawmakers to publish regulations on prepaid cards."

SICAB encouraged consumers to sign a contract with the business issuing prepaid cards, posting sample contracts on its website, (www.sgs.gov.cn).