OCC Reminds Consumers
of Holiday Tips on
Gift Cards
WASHINGTON – As the holiday
shopping season gets underway, the Office of the Comptroller of the Currency
(OCC) wants consumers to know that it is important to check carefully the terms
and conditions that apply to gift cards they buy or receive.
People thinking about purchasing gift cards
should consult a 2004 OCC Consumer Advisory that provides important information
about such issues as fees and expiration dates, and explains how to handle
complaints and lost or stolen cards.
“As we enter the holiday season, it is especially
important that consumers be alert to the wide variety of terms and conditions
available in the gift card market,” said Comptroller John C. Dugan. “By asking a few questions based on the
information provided in our Advisory, holiday shoppers will be able to select
the gift card that best meets their requirements for this popular product.”
Some issuers, for example, deduct a monthly fee
from the gift card or apply inactivity fees if the card has not been used for
some period of time. Gift card holders
may not realize that the value of their cards has been reduced until they use
them for a purchase.
The OCC suggests that consumers make sure they
have received disclosures on some of the important terms and conditions of the
gift card they purchase, including:
·
The fees, if any, that apply to the gift card,
including those that apply after the sale and reduce the value of the card
·
The expiration date of the gift card
·
The procedures to follow in the event a card is
lost or stolen
·
The locations at which the gift card can be used
·
The procedures to follow in the event there are
problems with the gift card
If these disclosures are not stated on the gift
card itself, or its packaging, the OCC suggests that consumers check to see if
there is a toll-free number or Web site that will provide this information.
Some gift cards are issued by banks and some are
issued by nonbank companies. The OCC has
been providing periodic guidance to national banks on the subject of
stored-value cards, including gift cards.
The most recent OCC guidance on gift cards was issued on August 14, 2006,
and addressed disclosure and marketing issues associated with gift cards.
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The
Office of the Comptroller of the Currency was created by Congress to charter
national banks, to oversee a nationwide system of banking institutions, and to
assure that national banks are safe and sound, competitive and profitable, and
capable of serving the banking needs of their customers in the best possible
manner. OCC press releases and other
information are available at http://www.occ.gov. To receive OCC press releases and issuances
by email, subscribe at http://www.occ.gov/listserv.htm.