Here's Why Gift Cards are Part of Credit Reform

Gift cards as Christmas gifts have been increasing in popularity, but so have their “hidden inactivity fees” – the reduction of a card’s stated value if it is not redeemed within a specified period of time. The sweeping credit card reform laws set to take full effect Feb. 22 address these fees, but they only prohibit charging inactivity fees on gift cards if they have been used within the past 12 months. After twelve months of inactivity, card issuers will be allowed to charge a monthly inactivity fee.

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