New York Passes New Law for Gift Card Users

If you have an old gift card lying around you should probably know about a new law that was signed by Governor Cuomo this week.

The law will essentially ban businesses from imposing certain fees and restrictions on gift cards in New York State. According to the Governor, the legislation increases the minimum time before gift cards are charged a user fee, places more restrictions on the fees, and expands the expiration dates of gift cards.

The new law mandates that gift cards cannot expire earlier than five years from the issue date. That's good news for procrastinators and those of us who find those cards from last Christmas at the bottom of the junk draw.

Other protections offered to gift card users include an increase in the time before fees can be charged for unused balances on gift cards. Currently it's 13 months, but that will now change to 25 months. Additionally, any monthly service fees will be waived if the consumer finds and uses a lost gift card within three years of the issue date.

The legislation will also force businesses to describe exactly what the procedure is to replace a missing card and make rules and regulations clearer to the customer.

Governor Cuomo says that the new protections will "help prevent New Yorkers from being nickeled and dimed by hidden costs and fees." He added that "no one expects an asterisk when buying a gift card."

Have you ever been burned by an old gift card? Tell us what you think about the new legislation in the comments section below or on our Facebook page.