News from
Kathy Klausmeier
8th Legislative District
www.kathyforsenate.com

Senator Katherine Klausmeier P: (410) 256-1353 F: (410) 256-0319 E-Mail: katherine_klausmeier@senate.state.md.us

January 5, 2010

Contact: Eric R. Backes P: (410) 256-1353 E-Mail: ebackes@senate.state.md.us

As we welcome the New Year and the Christmas decorations are all put away, many of us will be going out to the malls and downtown stores to use those gift cards we received from our friends and loved ones this holiday season. Back in 2006 I fought an uphill battle as the sponsor of new laws that protect consumers against hidden expiration dates and confusing fees and restrictions on store specific gift cards. Here are some important facts to know:

—Store-specific cards may not expire less than four years after the date of purchase and may not impose fees or charges of any kind during that four year period.

—Any terms or conditions concerning an expiration or fee that takes place after that four-year period must be printed clearly in a visible place on the front or back of the card, on a sticker permanently affixed to the gift card or on an envelope containing the gift card.

—These terms and conditions may not be changed after the date of purchase or issuance, unless the change benefits the consumer.

Separate from store specific cards are the cards issued by banks for use in multiple unaffiliated stores. Although these cards have the advantage that they can be used almost anywhere credit and debit cards are accepted, they also have some disadvantages for consumers. Among them are:

—They can expire in less than four years, as long as the expiration date is disclosed.

—They can also charge a variety of fees as long as they are disclosed, including service fees, dormancy fees, account maintenance fees, replacement fees, activation fees, etc…

Many people receive gift cards and forget about them or misplace them. Look through your drawers and your wallet to see if you have any old ones lying around…you might just have something of value that you can use!

If you have any questions regarding gift cards or you think that you have been issued a card that violates the laws mentioned above, contact my office at 410-841-3620 or Katherine.Klausmeier@senate.state.md.us or you can contact the Consumer Protection Division of the Maryland Office of the Attorney General directly at 410-528-8662 or on the web at http://www.oag.state.md.us/Consumer/. Best wishes for the New Year and happy shopping!