Fed issues new rule proposals regarding gift card fees
Tuesday, November 17, 2009 11:49 PM
The U.S. Federal Reserve has announced a new set of proposed rules regarding the shelf life of gift cards and how often fees can be applied to them.Under the proposed rules, no dormancy, inactivity, or service fee could be applied to any gift or prepaid card until the card had been issued for a minimum of five years and inactive for at least one year. Once fees could be applied, the rules would prohibit more than one fee from being applied every month.
Card issuers would also be required to clearly disclose all fees and expiration dates to the consumer upon purchase or "reloading" of the card.
The rules will undoubtedly help those who looking to consolidate debt by ensuring that gift cards retain their value over time.
"Consumers who do not use the value of the card within a short period of time may be surprised to find that the card has expired or that dormancy or service fees have reduced the value of the card," the Fed said of their decision, according to the Associated Press. "Even where fees or terms are disclosed on or with the card, the disclosures may not be clear and conspicuous."
The Fed's proposal on gift cards completed a charge given to them as part of the Credit Card, Accountability, Responsibility and Disclosure Act of 2009 to reform the gift card system and issue new regulations.
Recent News Articles
- Mortgage applications survey finds that fewer consumers willing to incur housing-related debt
- Government moves to broaden options for legitimate debt resolution options, stop scammers
- Revolving consumer credit falls, but overall numbers are up
- Report: Consumer attempts to reduce debt could be hampering economic recovery
- Report: Treasury Secretary warns world leaders that U.S. consumers look to reduce debt
Debt News Categories
About Debtmerica
Debtmerica is a leading debt settlement company that offers assistance to individuals and families who are experiencing financial difficulties and hardship.
We specialize in negotiated debt settlement to assist clients by reducing debt balances while providing an affordable monthly payment.
Our professional and knowledgeable staff has helped thousands of consumers get back on their feet financially.
Achievements
|
Debtmerica has had one vision since inception - to help Americans nationwide attain financial independence. At Debtmerica, we're proud of our achievements and honors. They represent our commitment to our vision and clients. |
|
|
|
|
A Secure & Trusted Site
|
Debtmerica is committed to providing a safe and secure site that you can trust. |
 |
|
 |