New Gift Card Law Takes Effect Tuesday

[The Straight Story]

New Gift Card Law Takes Effect Tuesday

On Jan. 1, consumers will be able to redeem gift cards for cash if the balance is less than $10, thanks to a new law sponsored by state Sen. Ellen Corbett, D-San Leandro.

Currently, gift cards worth less than five dollars can be subjected to dormancy fees and a store can refuse to give the remaining value back in cash no matter how small the value.

Richard Holober, Executive Director of the Consumer Federation of California, said, "Consumers should be aware that any dormant gift cards they have worth less than $10 can be redeemed for cash starting Tuesday."

Holober said, "As long as the card was bought 1997 or later, you'll get your cash back. After all, the retail store or restaurant chain was already paid for the full value of the gift card."

http://www.news10.net/display_story.aspx?storyid=36789&GID=Rysd8wfcRLz2ih8aJTTZqW9K0eqBug4Co3IQX4PdBCw%3D

[Gormy Cuss]

1. You'd think that we wouldn't need laws like this, but..

It IS just a California law, however. Other states may not allow this.

[lame54]

2. A law in the consumers favor? - I'm confused

[JustABozoOnThisBus]

4. All outstanding gift cards are for more than $10

so no liability for companies that matter to *.


Well, at least all gift cards from Halliburton, or Blackwater.


When you care enough to send the very best.

:hi:

[Joe Fields]

3. Good info.

This has been a source of aggravation for me for a number of years. I can't imagine how many millions of dollars in unused portions of cards that retailers have benefitted from, over the years.

I can remember a time when a person could just go and redeem a gift card for cash, but that was a long time ago.

[in_cog_ni_to]

5. That nice. I wish it was cash back for ANY remaining amount. It should be handled as cash, IMCPO.

It's a real pain in the butt when you have numerous gift cards and have no clue how much money is on them. My son use to get Toys R Us gift cards all the time for B-day presents. One day we gathered them all up because he wanted to buy a video game....probably 10 cards and went to the store. The poor lady at the register had to scan all of them so we knew how much was on them.

I don't see why they can't just give change as if the card were cash. They HAVE already been paid for them.

[Wizard777]

8. Gift cards are a scam!

They make so much money off lost and unclaimed cards. Let me put it to you like this. If you leave the store with mechandise and the store doesn't get your money. That's a crime called shoplifting. So if the store takes your money without giving you any mechandise. That should be a crime called robbery. More procisely gift card robbery. Gift cards are just another way stores rip you off.

[Lone_Star_Dem]

6. This is good

In a perfect world they would be redeemable for cash or purchase. It sucks getting gift cards to places you don't need anything from.

I wonder if I can use the gift card I got for Wal-Mart to purchase something and then return it for cash?

[Wizard777]

7. When you buy a gift card. Your giving a gift to the store. Not your loved ones.

I've gotten gift cards from some of the Charities I volunteer at. I got one for a grocery store. They had big sign up. "Gift Cards are good for any mechandise in the store." They wouldn't let me use my gift card to buy cigarettes. I told the manager that they were merchandise in the store. He still refused. I told him then the sign is false advertizing and needed to take it down right now. He refused. Needless to say I shop there anymore. I refuse to patronize frauds. Also a Gift Card is just about the only gift that you cannot return for a full refund. So when you buy a gift card. Your giving the gift to the store and the person you give the card to might get someting.