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Consumers should choose, use gift cards wisely

On the hunt for the perfect gifts, many consumers find that gift cards are the best fit. Gift cards are one of the most popular gift items during the holiday season because they are easy to give and to receive.

Gift card recipients can use dollars stored on a gift card like cash to buy what they want from the card issuer, such as a restaurant or a department store.

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Or contact the attorney general’s Consumer Protection Division to answer questions on gift cards and other consumer issues at 800-482-8982.

Attorney General Dustin McDaniel issued a consumer alert to make sure Arkansans are aware of their rights regarding gift cards and gift certificates.

Due to the growing popularity of gift cards, the state of Arkansas enacted the Fair Gift Card Act in 2007 to protect consumers who buy or receive the cards. The act established safeguards for consumers against potential troubles like arbitrary expiration dates and inactivity fees.

"When consumers give a gift, they want to know the details about what they are giving," McDaniel said. "The Fair Gift Card Act ensures that Arkansans can be certain of the terms and conditions of the cards or certificates they purchase."

Consumers should always be sure to check a gift card's expiration date, whether the card comes with any fees and whether money stored on the card will lose value or be deducted over time if unused.

State and federal law provide that gift card expiration dates must be disclosed. The expiration date must be at least five years from the date the card was purchased, or from the last date additional money was loaded on to the card.

Also, inactivity fees may not be assessed by card issuers unless the card has been inactive for two full years. Any and all additional fees must be clearly disclosed on the gift card or its packaging.

Keep all original receipts and retain the gift card ID number in a safe location. Often, card issuers require this information to recover lost or stolen cards.

Report any lost or stolen gift cards to the card issuer.

Be sure to use gift cards as soon as possible in order to get the full value of the card. More than $2 billion in money loaded onto gift cards went unredeemed, according to a 2012 estimate.

McDaniel offered additional recommendations for gift card givers and recipients.

• Purchase gift cards from trusted businesses. Don't buy from Internet auction sites in order to protect against buying counterfeit or fraudulently obtained cards.

• If the terms and conditions of a card do not seem acceptable, or if issuers require payment of an additional fee to purchase a card, shop elsewhere.

• Buy from a financially stable entity. If a retailer or restaurant closes or files for bankruptcy, cards may lose their worth.

• Contact the card issuer if it appears that the card has expired or funds have been deducted after a period of inactivity. It is possible the issuer may choose to honor the card or reverse the fees.

If problems continue with a gift card after contacting the card issuer, contact the Federal Trade Commission -- for cards issued by retailers -- at www.ftc.gov or the Comptroller of the Currency's Customer Assistance Group -- for cards issued by national banks -- at 800-613-6743.

NAN Life on 12/17/2014

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