Chances are you gave or received at least one gift card for Christmas or Hanukkah. Once again this year, these cards were the most requested holiday present.
Despite their popularity, gift cards are not the same as cash. They can expire after five years (unless prohibited by state law) and there may be dormancy fees for not using them.
Sen. Richard Blumenthal (D-Conn.) wants to ban inactivity and service fees, and prohibit expiration dates on all gift cards and gift certificates. His Gift Card Consumer Protection Act would do that and much more.
“This bill bars absolutely draconian deadlines and abusive fees and charges that unfairly confiscate consumer gift card cash,” Sen. Blumenthal said in a statement. “Gift card companies fatten their profits and shrink consumer wallets with exploitative expiration dates and petty, underhanded junk fees. Gift cards should not be the gift that keeps on taking. This measure assures that consumers get their money's worth, no matter when they use the gift card.”
The Gift Card Consumer Protection Act would also prevent loyalty, promotion and awards cards from expiring. These are the type of gift cards you get as a bonus for buying a product or redeeming credit card points. Many of these cards expire in as little as 30 days.
There is much more to this story from NBC News, to read about it CLICK HERE.