WASHINGTON --The
Office of the Comptroller of the Currency (OCC) issued a consumer advisory
today providing important information that holiday shoppers should have about
the terms and conditions that apply to gift cards.
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.
Demand
for gift cards has been growing rapidly and it is especially important in this
holiday season that consumers be alert to the wide variety of terms and
conditions available in the gift card market, said Julie L. Williams, Acting
Comptroller of the Currency. By asking a few questions and being aware of some
of the key disclosures, holiday shoppers will be able to select the gift card
that best meets their requirements for this increasingly popular product.
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 such as
shopping malls. The OCC has been providing
periodic guidance to national banks on the subject of stored-value cards,
including gift cards.
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