Gift Card Bill Would Ban Expiration Dates And Nonuse Fees

Law360, New York (November 26, 2012, 5:29 PM EST) -- A Senate lawmaker on Friday announced plans to introduce new legislation banning expiration dates and nonuse fees for gift cards, changing current federal law that allows cards to become worthless after five years and permits dormancy fees 12 months after purchase.

Sen. Richard Blumenthal, D-Conn., said his Gift Card Consumer Protection Act would completely eliminate the “draconian deadlines and abusive fees” that some consumers have to deal with if they do not spend their gift card funds right away.

“Gift card companies fatten their profits and...
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