Many people like to purchase gift cards as presents but unfortunately the receiver can be hit by expiration dates and unexpected service fees, that reduces the monetary value of the gift card.
The banks that issue gift cards are charging anywhere from two to five dollars a month for inactivity, sometimes starting six months after purchase. Gift cards do not currently have these terms and conditions stated on them.
New U.S. rules protecting consumers of gift cards was proposed by the Federal Reserve.
The proposed rules state that gift cards will not expire for five years from the date of purchase.
“Consumers who do not use the value of the card within a short period of time may be surprised to find that the card has expired or that dormancy or service fees have reduced the value of the card,” the US Federal Reserve said Monday.
“Even where fees or terms are disclosed on or with the card, the disclosures may not be clear and conspicuous.”
Service fees would not be able to be charged until the gift card was inactive for at least a year and the terms will have to be in place on the gift cards. Unfortunately, the crackdown will not happen in time for the Christmas season, these new rules are expected to take place on August 22, 2010.
gift Card Crackdown
It’s crap that they would charge…always trying to squeeze money out of folks who have the least amount of money. I am tired of this country bleeding the hard working folks of this country who still struggle to get ahead while the rich get richer.
I agree just keep bleeding the little guy. However, if this continues then we can just stop buying gift cards and go back to the old fashion cash!
These companies are using the money paid for the cards while they are not being used! They are using the same ploy that banks use in their funds availability policies on deposits. The banks withhold the funds for up to five days, but get the money over night through the Federal Reserve. Its time we as consumers fight these practices that are used to make money at our expense.
Skip Christmas for a year, fuck-em back.
They will learn a lesson.
They should have a list of the stores that have charges, not all do. Or have expiration info on the front of the card like a credit card. Why do the stores that don’t want to bleed us have to pay too? Just like last year’s panic after Sharper Image pulled a fast one. Home Depot made the list of not to buy becasue they were closing 5 of the hundreds of stores. We need better info.