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Reg
E Proposed Rule to Regulate Gift Cards (cont'd)
Prohibition on Fees or
Charges
A dormancy, inactivity, or service fee cannot be imposed on a gift
certificate, store gift card, or general-use prepaid card unless:
·
There has been no activity within the one-year period ending on the date
on which the fee is imposed.
·
The amount of the fee, how often is it assessed, and if it is assessed
for inactivity is disclosed; and
·
No more than one such fee is imposed per month.
Prohibition on
Expiration Dates
The devices covered may not be sold or issued unless the expiration
date of the funds underlying the certificate or card is no less than
five years after the date of issuance (in the case of a gift
certificate) or five years after the date of last load of funds (in
the case of a store gift card or general-use prepaid card). Also,
information must be disclosed regarding whether the funds underlying
the device may expire
The
Proposal provides two alternatives for disclosing the fact that
expiration date on the device and the expiration date for the
underlying funds differ. The first alternative would prohibit the
sale or issuance of a certificate or card with a printed expiration
date that is less than five years from the date of the purchase. The
second alternative would require policies or procedures to ensure
that a consumer has a reasonable opportunity to purchase a
certificate or card that has an expiration date that is at least
five years from the date of the purchase.
The
Proposal prohibits the imposition of any fees for replacement of an
expired card or certificate if the underlying funds remain valid.
Comments Due
Comments are due December 21, 2009.
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