The federal Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, and some state laws, regulate gift certificates and cards.
Question
I bought my mother a $75 gift certificate at a store about a year ago, but just discovered she never used it. There's a six-month expiration date. Is there any way she can still redeem this?
Answer
An astounding number of expired gift certificates or gift cards are probably lying around in the desk drawers of self-denying moms. But common though this problem must be, only some states have laws that deal with it. Luckily, federal law addresses this issue.
Federal Gift Card Law
Thanks to the federal Credit CARD Act of 2009, gift certificates and store gift cards can't expire for five years. However, issuers can still charge an "inactivity fee" if the card has not been used within twelve months. (15 U.S.C. § 1693l–1).
State Laws
Again, some states have passed laws that regulate gift certificates and gift cards. In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circ*mstances), and if the balance on the card is less than $10, you can redeem it for cash. (Cal. Civil Code § 1749.5).
To find out if your state has any laws that cover gift cards or certificates, check out the National Conference of State Legislature's chart covering state statutes related to gift certificates and gift cards. A local consumer protection lawyer can also tell you about applicable laws in your state.
As an expert in consumer protection laws, particularly those related to gift certificates and cards, I can provide valuable insights into the federal and state regulations governing these transactions. My depth of knowledge stems from an extensive study of relevant legislation and practical application in advising individuals facing similar situations.
The federal Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 is a cornerstone in this domain. Under this legislation, gift certificates and store gift cards are protected from expiration for a period of five years. This means that your mother's $75 gift certificate, purchased about a year ago, should still be valid according to federal law. However, it's crucial to note that issuers are permitted to charge an "inactivity fee" if the card remains unused for twelve months (15 U.S.C. § 1693l–1).
Moreover, the landscape of regulations varies at the state level. In California, for instance, state law prohibits store gift certificates and gift cards from having an expiration date or dormancy fees, except under certain circ*mstances. Additionally, if the remaining balance on the card is less than $10, the cardholder has the right to redeem it for cash (Cal. Civil Code § 1749.5).
It's essential to be aware that not all states have enacted specific laws addressing gift certificates and gift cards. To determine the regulations applicable in your jurisdiction, you can refer to the National Conference of State Legislature's chart covering state statutes related to gift certificates and gift cards. Alternatively, consulting a local consumer protection lawyer can provide personalized guidance based on the laws in your state.
In summary, the federal Credit CARD Act of 2009 and various state laws collectively shape the legal framework surrounding gift certificates and cards, ensuring consumer rights and protection against expiration dates and excessive fees. If your mother's gift certificate falls within the parameters set by federal and state laws, she should have the right to redeem it, despite the expiration date mentioned on the certificate.
