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Along with consumer credit counseling connection, CARD Act affects gift cards
By Edith Barlow on Mar 29th, 2010
New rules from the government may change how consumers act with their credit card debt companies.
However, the Credit Card Accountability, Responsibility and Disclosure Act also advances new rules on gift cards. Recently, the Federal Reserve Board announced the new rules based on the act.
"The rules protect consumers from certain unexpected costs and require that gift card terms and conditions be clearly stated," a release from the Fed said.
Companies that issue gift cards will not be able to charge dormancy fees on them unless the cardholder has not used the card in at least a year. Furthermore, card issuers cannot charge more than one fee a month on the card. Gift cards will also be required to have a minimum lifespan of at least five years.
Along with the gift card rules, the Credit CARD Act may make it easier for consumer to deal with their credit card debt. Lenders now have to present a phone number on bills that will connect a cardholder with a consumer credit counseling service, which can help set up a plan to deal with a person's debt.
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