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Consumer credit counseling, gift cards tied to federal rules
By Edith Barlow on Apr 21st, 2010
Regulations from the Credit Card Accountability, Responsibility and Disclosure Act can help consumers get in contact with consumer credit counseling services, while also providing protection for gift-card users.
The Federal Reserve Board recently released a new informative publication regarding rules in the Credit CARD Act that govern gift cards. The new regulations take effect in the last phase of the act on August 22.
The new rules stipulate that funds on a card must be good for at least five years. Gift-card issuers also will have to provide consumers with rules for the products that are more transparent.
"All fees must be clearly disclosed on the gift card or its packaging," the central bank's publication said.
Other rules from the Credit CARD Act already took effect, including requiring credit card issuers include a number that will connect accountholders with consumer credit counseling services.
These firms can provide people with a number of ways to deal with their debt, including analyzing their finances and setting up a budget. They can also recommend ways for consumers to trim expenditures, which will make it easier to pay off debt.
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