DES MOINES, IA (11/24/2009)(readMedia)-- State Treasurer Michael L. Fitzgerald encourages Iowa consumers to be proactive in protecting the value of the gift cards they give or receive this holiday season by following some basic tips. "Holiday shoppers are expected to spend around $24 billion nationally on gift cards this year," stated Fitzgerald. "Unfortunately, some of those cards will never be redeemed."
A recent study by Consumer Reports found that twenty-five percent of those who received gift cards last holiday season still hold at least one unredeemed card. "Holding a gift card too long increases the odds that it will never be used," stated Fitzgerald. Prompt usage of gift cards reduces the likelihood it will be lost or stolen, and eliminates the need to worry about expiration dates and fees that can reduce its value.
"Nobody can afford to let money go to waste," said Fitzgerald. "These tips can help you protect the value of the gift cards you purchase for others, as well as the ones you receive."
TIPS FOR GIFT CARD PURCHASERS:
- Read the fine print. If the disclosures are too confusing, you may want to rethink your purchase.
- Buy gift cards from reputable retailers where you know the recipient will shop.
- Give the original receipt and disclosure information to the recipient in the event it is needed to replace a lost or stolen gift card.
TIPS FOR GIFT CARD RECIPIENTS:
- Read the fine print. Check the disclosures for expiration dates or fees that can reduce the value of the gift card.
- Understand the retailer's policy for replacing a lost or stolen gift card.
- Use the gift card promptly.
- Keep the original receipt if it was included with the gift card.
"Retailers are encouraged to honor all of the gift cards they sell, even those which have expired," Fitzgerald stated. "By doing so they stay on friendly terms with their customers." Current law requires that the expiration date and fees be clearly displayed on any gift card that carries them.
Increased protection for consumers is on the way. Passed by Congress earlier this year, the Credit Card Act of 2009 will prohibit fees on gift cards for one year and expiration dates of less than five years from the date of purchase. The new rules will go into effect in 2010.
Consumers with questions or concerns regarding a gift card that a retailer will not honor because it has expired are encouraged to contact the State Treasurer's office. Please provide a copy of the gift certificate and a brief letter stating the circumstances of the complaint.
Michael L. Fitzgerald
Treasurer of the State of Iowa
