As you may have noticed, the CARD act applies to much more than just credit cards. Your Gift Card program will also be affected. Along with Home Equity Lines, unsecured, and other secured lines of credit. It even takes a shot at gift certificates. . . and don't forget Protecting the Right of Individuals to Bear Arms in Units of the National Park System - I'm not kidding, this is actually in the CARD Act. Ever wonder how many laws and regulations our lawmakers can actually come up with? I'm hoping they run out of ideas soon.
The law amends Regulation E to prohibit a credit union from charging dormancy/inactivity fees, or service fees on a gift certificate, store gift card or general-use prepaid card. But a fee may be assessed after 12-months of inactivity. Only one fee can be charged each month, and the proper disclosures have been given at the time the card was purchased.
In addition, a gift certificate, store gift card or general-use prepaid card cannot have an expiration date earlier than 5 years after the instrument was issued or the date on which funds were last loaded on to the card, and the terms of expiration must be clearly stated. The Fed has yet to provide the amount of fees that are acceptable. The Fed is to issue final regulations with an effective date 15 months after the President signed the CARD ACT.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment