Holiday present: gift cards protected by state law
Imagine receiving a gift card for the holidays – only to find it had expired or lost its worth before you could use it.
That was the dilemma facing many gift card recipients before a new Illinois law was enacted in January 2008. The law protects the holders of gift cards from having the card expire before five years. The law also prohibits companies from charging a fee on the cards, such as “non-use” fees.
The new law does not apply to gift cards sold before January 1, 2008. It also does not apply to certain gift cards, like Visa cards, which can be used at multiple businesses.
In the past, gift cards could become virtually worthless if they weren’t used in a specific period of time.
If you’re in doubt about the terms of the gift card, check the fine print on the back. Also, if you receive one, try to use it as quickly as possible. Retailers count on the fact that some recipients will forget to redeem their cards, so don’t stash it in a drawer and forget about it.Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.