Federal Reserve Cracks Down on Gift Card Abuses

Published on March 24, 2010 by Robert A. Kraft

In a bit of good news for consumers, the Federal Reserve issued new rules yesterday prohibiting certain restrictions on gift cards. Under the new rules taking effect August 22, 2010, consumers must have at least five years to use the gift cards before they expire. The Fed also says service or inactivity fees can be imposed only under certain conditions. Such fees can be charged if the consumer hasn’t used the card for at least a year, if the consumer is given clear disclosures about them, and no more than one fee is charged a month.

Categories: Consumer Law Basics

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