Schumer Takes on Gift Card Laws

For some time, gift card expiration dates and fee policies have been the topic of heated debate in this country. 

Some states, like California, have enacted laws that prohibit them from expiring.

Still, there exist no federal laws concerning gift card expiration dates or fees in place to protect the consumer.  Charles Schumer, senior US senator from New York, hopes to change all that.

The first part of Schumer’s proposal prevents companies issuing gift cards from reducing the balance for nonuse for a year from the time of purchase.  Further, if the gift card is used anytime within that year, the time frame resets.

The second part of the program prevents gift cards from expiring for five years. "You can get a $50 gift card at Christmas time…and by the time you get to the store in June it's only worth $20. That is wrong," says Schumer.

The new gift card policies are part of the credit card bill of rights currently making its way through congress.  Senator Schumer hopes to have the new bill enacted by Memorial Day.