• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

Gift Cards that deduct $1.50 after unused for 1 year

T

TheNinja

Lifer
So when a gift card says it will deduct $1.50 per month if it is unused for 1 year. Is this legal in all states, specifically California? Anyone konw where i could look up this law?
 
It's legal in a lot of places.

http://www.dca.ca.gov/legal/s-11.htm

Q.3. Can a gift certificate or gift card contain a service fee?

A. No. A gift certificate or gift card cannot contain a service fee, including a fee for dormancy (non-use)10.

However, a gift card may contain a dormancy fee if all of the following are true:

The value remaining on the gift card is $5.00 or less each time the fee is assessed; and

The dormancy fee is $1.00 per month or less; and

The card has been inactive for 24 consecutive months (for example, no purchases, ?reloading,? or balance inquiries); and

The holder may reload or add value to the card; and

The card contains a statement in at least 10-point type stating the amount and frequency of the fee, that the fee is triggered by inactivity, and at what point the fee will be charged. This statement may be on the front or back of the card, but must be visible to the purchaser prior to purchase
Click to expand...


http://www.bankrate.com/brm/news/cc/20031126a1.asp
 
Originally posted by: chuckywang
Originally posted by: Ranger X
Why would it be illegal? If it's in their policy then there is nothing you can do about it.
Click to expand...

Stores just can't make their own rules about some stuff.
Click to expand...

WTF, you can't find something to buy within a year ???
 
Originally posted by: chuckywang
Originally posted by: Ranger X
Why would it be illegal? If it's in their policy then there is nothing you can do about it.
Click to expand...

Stores just can't make their own rules about some stuff.
Click to expand...

It is from Bennigans. I know it says right on the back "will deduct $1.25 each month if it is unused after 12 months". But my thinking is that the states have laws on this and that California says they cannot expire or deduct form gift cards.
 
Originally posted by: Aves
It's legal in a lot of places.

http://www.dca.ca.gov/legal/s-11.htm

Q.3. Can a gift certificate or gift card contain a service fee?

A. No. A gift certificate or gift card cannot contain a service fee, including a fee for dormancy (non-use)10.

However, a gift card may contain a dormancy fee if all of the following are true:

The value remaining on the gift card is $5.00 or less each time the fee is assessed; and

The dormancy fee is $1.00 per month or less; and

The card has been inactive for 24 consecutive months (for example, no purchases, ?reloading,? or balance inquiries); and

The holder may reload or add value to the card; and

The card contains a statement in at least 10-point type stating the amount and frequency of the fee, that the fee is triggered by inactivity, and at what point the fee will be charged. This statement may be on the front or back of the card, but must be visible to the purchaser prior to purchase
Click to expand...


http://www.bankrate.com/brm/news/cc/20031126a1.asp
Click to expand...

AWESOME! Aves for Elite! 😉
 
it is illegal in Ca,in fact girft card cannot expore in CA either. They are to be treated as cash. I always have my parents send me their expored giftcards if they dont use them all up ( they live in AZ) its great
 
Originally posted by: Toasthead
it is illegal in Ca,in fact girft card cannot expore in CA either. They are to be treated as cash. I always have my parents send me their expored giftcards if they dont use them all up ( they live in AZ) its great
Click to expand...

cool. well if they try to tell me it's not worth $25 I'll have to explain the law to them and tell them to go look it up if they have a problem with it. If fact I should probably arrest them for breaking the CA state law if they try it.

This also seems to confirm it http://shamus.giftcardsolutions.com/fp/...%20Compilation%20%20October%202004.doc


 
Originally posted by: Toasthead
it is illegal in Ca,in fact girft card cannot expore in CA either. They are to be treated as cash. I always have my parents send me their expored giftcards if they dont use them all up ( they live in AZ) its great
Click to expand...

Q.3. Can a gift certificate or gift card contain a service fee?

A. No. A gift certificate or gift card cannot contain a service fee, including a fee for dormancy (non-use)10.

However, a gift card may contain a dormancy fee if all of the following are true:

* The value remaining on the gift card is $5.00 or less each time the fee is assessed; and
* The dormancy fee is $1.00 per month or less; and
* The card has been inactive for 24 consecutive months (for example, no purchases, ?reloading,? or balance inquiries); and
* The holder may reload or add value to the card; and
* The card contains a statement in at least 10-point type stating the amount and frequency of the fee, that the fee is triggered by inactivity, and at what point the fee will be charged. This statement may be on the front or back of the card, but must be visible to the purchaser prior to purchase11.


That's from dca.ca.gov... CALIFORNIA

Which means, for the people that don't read, it's NOT illegal if all of those are true.
 
You must log in or register to reply here.

TRENDING THREADS

Back
Top