Consumers can breath a sigh of relief today as the Federal Reserve’s new regulations governing giftcards and other types of prepaid debit cards go into effect.. Three main areas covered under the new regulations are:
*Products – what is covered and what is not
*Restrictions on dormancy, inactivity, or service fees – which fees have been eliminated and which are applicable
*Restrictions on expiration dates – what new limitations apply
All-in-all, the provisions, which are part of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act), look like they have addressed some of the major concerns most consumers have had about giftcard purchases and usage. Some sources are already predicting an increase in the number of giftcard purchases for the upcoming holiday season solely because of the new rules going into effect. You can read the actual press release from the Federal Reserve (dated March 23, 2010) from their website here.
Here is the 104 page notice from the Federal reserve
or just click here for Highlights of the Final Gift Card Rule
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