The not-so-perfect gift?
If you're gearing up for the big holiday shopping push, read this first!
Financial guru and my partner-in-crime Eileen Ambrose says:
Gift cards are a thoughtful present for those who are difficult to buy for. Or, they’re the lazy giver’s way to avoid the mall crowd at holidays. I include myself in this latter category.
Either way, recipients often don’t redeem them. Cards go missing or expire. One estimate puts the loss of unredeemed cards last year at nearly $8 billion. That’s free money for retailers.
Just as maddening, even if you redeem cards, you might find that the value isn’t what it used to be because of hidden fees.
Consumer Reports today kicks off a campaign warning about gift card pitfalls. A couple of years ago....
Maryland enacted a law to offer some protection, but there are enough loopholes that Marylanders should check out Consumer Reports’ tips before buying a card.
Among the gotchas to look out for: Fees as high as $15 if you need to replace a lost card. A fee to redeem a card for cash. Monthly maintenance fees if you don’t use the card in six to 12 months.
If someone gives you a card, quickly spend it. Even if spend the balance down to zero, save the card. You might need it to return an item.
Comments
I don't know if it passed (chances are good it did...) but the legislature, during special session, was looking at making gift cards purchased in Maryland expire after a certain period and any unused funds revert back to the state rather than to the retailer.
Anyone have any more information on this?
I think retailers just won't sell them "in state" if they stand to lose all that money.
D: Not sure about the special session part, but in the 2007 session, a bill was sponsored requiring that the value of gift card that was not used within four years after the date of sale would be considered “abandoned property” and remitted to the State Comptroller. Proceeds would have gone to public education through a new Maryland Education Fund. It was still being studied by committee.
Posted by: Melissa | November 13, 2007 3:23 PM
I purchased a Target gift card 1.5 years ago, but never gifted it. My girlfriend found it and called Target. It still had the original $75, no charges or anything!
Posted by: nestee | November 13, 2007 5:22 PM