New NY legislation protects gift or credit card holders from unfair practices – Telemundo New York (47)

New York has new legislation that protects consumers from gift and credit card exploitation practices. The package of laws, signed Friday by Governor Kathy Hochul, protects credit card holders on the one hand by creating a grace period for the use of reward points after an account is closed.

Additionally, the law prohibits the fees and expiration dates of gift cards and gift certificates.

Legislation S.133-B / A.5698-B:

It protects credit cardholders by creating a grace period for the use of reward points after an account is closed so that they do not fall victim to rewards programs that are often governed by agreements that are non-transparent. for the consumers.

A particular provision in many credit card agreements allows the credit card issuer to cancel all accumulated reward points or other reward benefits upon closing the credit card account, without providing the credit card holder no opportunity to use accumulated points. This becomes a consumer protection issue when the issuer unilaterally closes an account for reasons such as an owner not making a payment, or for unspecified reasons that fall under general clauses, such as if the issuer believes that the owner may not want to or not being able to pay your debts on time.

Legislation S.3467-B / A.4629-C

It prohibits the fees and expiration dates of gift cards and gift certificates. Many gift cards are sold with a variety of fees attached that can significantly reduce their value. These include fees paid at the time of purchase and inactivity fees for not using a gift card for a certain period of time. The Federal Credit CARD Act of 2009 imposed some restrictions on gift card fees by prohibiting inactivity fees unless a gift card is inactive for at least twelve months and by limiting the frequency of recurring fees to no more than once a month. The CARD Act also prohibits expiration dates before five years after issuance. However, the fees allowed on gift cards can still be substantial.

This bill protects consumers by banning all fees on gift cards and banning gift cards that lose value over time. Additionally, to further eliminate loss of value for consumers, this bill prohibits expiration dates on gift cards and gift certificates that occur before nine years from the date of issue and allows redemption. when the remaining balance is less than five dollars.

“As we enter the Christmas giving season and New Yorkers purchase gifts for their friends and family, it is more important than ever that we protect them from unfair practices that have a real impact on consumer outcomes,” said Governor Hochul . “This legislation will ensure a season of good humor in New York State by ensuring that no New Yorker unfairly loses their accumulated credit card rewards or is defrauded when purchasing a gift card for a loved one.”

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