Getting your player ready...
WASHINGTON — The Federal Reserve is proposing rules for the $50 billion gift-card industry that include limits on fees for not using the card and requiring cards expire no earlier than five years after purchase.
Many gift-card issuers currently charge fees to recipients of gift cards that haven’t been used for an extended period of time by deducting funds from the cards.
“The rules would protect consumers from certain unexpected costs and would require that gift-card terms and conditions be clearly stated,” the Federal Reserve said Monday.
The proposed rules come after the Federal Reserve was criticized for not doing more to protect consumers during the credit bubble.The rules would not take effect until Aug. 22.
