New Rules For Gift Cards
PHILADELPHIA (CBS) - The holiday shopping season is underway, and again this year, gift cards promise to be a popular gift-giving item, but they will be more consumer friendly this year.
The Visa gift cards you purchase this year for friends and family will have different terms. Temple University assistant professor of practice in the Fox School of Business Katie Gerst says they come under the new Credit Card Disclosure Act:
"The provisions say the gift card cannot expire in any amount of time less than five years from the purchase date, and it also restricts banks from charging dormancy fees until the card has been inactive for at least 12 months."
The new gift cards are supposed to have the terms and conditions on the back, but because of production problems they all might not have them.
What about store gift cards?
"Especially in this economy, you want to pay attention to if you think a company may be going bankrupt. Because once a company goes bankrupt, that gift is not worth anything."
Reported by Michelle Durham, KYW Newsradio
