Gift card expiration

[Craig at jet]

What is the name of your state? Illinois, I have heard that there is a law against retail companies enforcing expiration dates on prepaid gift cards? Is there such a law and would it apply to companies doing business in IL?

 

[racer72]

If it was against the law, why would companies put expiration dates on the cards? Expiration dates are allowed to prevent retailers from having to pay interest on the unused amount after set periods of time. It also has to do with inventory control. When gift cards are not used, that means merchandise sits on the retailer shelves. There is no such law.

 

[JETX]

Actually, expiration dates on gift certificates and cards is illegal in at least California, Hawaii, New Hampshire, Massachusetts and Rhode Island. And some states (PA for example) do not let the merchant keep the 'unearned' funds... they are transferred to the states 'unclaimed funds' account.

As for Illinois...
"Currently, retailers who offer gift certificates or gift cards are required by law to report the value of a gift certificate or gift card as unclaimed property after it has not been redeemed for five years. "

(765 ILCS 1025/10.6)
Gift certificates and gift cards.
(a) This Act applies to a gift certificate or gift card only if:
(i) the gift certificate or gift card contains an expiration date or expiration period; and
(ii) none of the exceptions in this Section apply.
(b) This Act does not apply to a gift certificate or gift card that contains an expiration date or expiration period if:
(i) the gift certificate or gift card was issued before the effective date of this amendatory Act of the 92nd General Assembly;
and
(ii) it is the policy and practice of the issuer of the gift certificate or gift card to honor the gift certificate or gift card
after its expiration date or the end of its expiration period and the issuer posts written notice of the policy and practice at locations at which the issuer sells gift certificates or gift cards.
The written notice shall be an original or a copy of a notice that the State Treasurer shall produce and provide to issuers free of charge.
(c) Nothing in this Section applies to a gift certificate or gift card if the value of the gift certificate or gift card was reported and remitted under this Act before the effective date of this amendatory Act of the 92nd General Assembly."
Source: http://www.legis.state.il.us/ilcs/ch765/ch765act1025.htm

So, with the above information, I suggest you returning to the business and asking them if they will honor the card or if they will have to send the funds to the state. I would ask, "Wouldn't it be a much wiser 'consumer' decision to allow me to use the card and be happy, then to refuse the card and piss me off??"

 

[I AM ALWAYS LIABLE]

What is the name of your state? Illinois, I have heard that there is a law against retail companies enforcing expiration dates on prepaid gift cards? Is there such a law and would it apply to companies doing business in IL?

My response:

In Illinois, gift certificates may, in fact, be sold with an "expiration date" (such dates are outlawed in California).

Retail merchants may enforce their expiration dates, but the cash value of the certificate "escheats" to the State of Illinois. The merchant may (but is not required) post a conspicuous sign that it does not enforce "expiration dates." In that event, a consumer is entitled to use an otherwise "expired" gift certificate.

An Illinois appellate court held that the failure of an individual to use a gift certificate before its expiration date does not prevent the state from taking the property from the holder as custodian. People ex rel. Callahan v. Marshall Field & Co., 404 N.E.2d 368, 83 Ill. App. 3d 811 (Ill. App. Ct. 1980).

Illinois: Generally, Ill. Rev. Stat. ch. 765, § 1025/1 et seq. Five years for gift certificates. Ill. Rev. Stat. ch. 765, § 1025/9. Apparently, state escheat laws do not apply to a gift certificate with no expiration date or those that have an expiration date but the issuer has a (written and posted) policy of honoring expired certificates. Ill. Rev. Stat. ch. 765, § 1025/10.6. A gift certificate that expires before it is used escheats to the state. People ex rel. Callahan v. Marshall Field & Co., 404 N.E.2d 368 (Ill. App. Ct. 1980).

IAAL

 

[HomeGuru]

This is great. Two of our top mastermind Senior Members responding at the same time. Way cool.

 

[JETX]

Damn, don't you know that it just pisses me off to have IAAL post a 100% accurate, on-point response right after me.... that agrees with my post???
Must be livin' right!!

 

[racer72]

Guess that is what I get for calling Target stores customer service to find out there policy on gift cards expiration dates. Glad I didn't call K-Mart.

 

[HomeGuru]

Damn, don't you know that it just pisses me off to have IAAL post a 100% accurate, on-point response right after me.... that agrees with my post???
Must be livin' right!!

**A: as the saying goes, great minds think alike.