Posted on 01/05/2011 7:10:25 AM PST by Biggirl
Last summer, New Jersey ammended the state’s Uniform Unclaimed Property Act, allowing the state to seize (steal) unused money on gift cards. The law was signed by Gov. Chris Christie (R-N.J.). In November, a judge temporarily struck down the law. How I missed this before, I just don’t know, as is a prime example of actions that would be considered criminal if done by a private party.
Gift cards may certainly be convenient for many, but I think they are a pain in the you-know-what. They can cause trouble for both merchants and customers who willingly enter into financial agreements. Cards can easily be lost by the customer, and the merchant has to figure out the accounting when a customer holds onto the card. Of course, you also have the issue with merchants going bankrupt.
Not to mention, you always end up having a 97 cent balance on that damn card…
New Jersey – like most other states – spelled out regulations concerning gift cards and gift certificates back in 2005 and 2006 when customers were complaining about fees and cards expiring. Those mean corporations got to keep the money after they expired, even though the terms were clear when the cards were purchased.
(Excerpt) Read more at radioviceonline.com ...
“Government to seize unopened Christmas presents.”
This is no different than escheatment laws that have been on the books in practically all states.
Financial companies can’t keep money that gets abandoned. They have a duty to either inform the customer that they still have funds or turn the funds over to the state.
If the card hasn’t been used in 2 years, the odds are more likely that the consumer has forgotten about the funds or card instead of is just sitting on it.
I have two on my desk at home from last Christmas. I know exactly where they are.
If I buy a gift card from a national retail chain, is that not interstate commerce? And if so, what does the State of New Jersey have to say about it?
So companies have to report unused gift card amounts to the state as well as banks having to report unused travelers checks? What if people just want to hang on to them? What business is it of NJ?
They’d steal a hot stove and come back for the smoke. BTW, if you have 97 cents on your gift card, you can apply it towards a purchase.
I had a $5.00 ACE Rewards Card and wanted to buy something that cost $4.99 (with tax $5.32). The cash register would not process the order. I told the girl, “I have a $0.02 cent 6-32 nut here”, holding up an imaginary nut, “please add it to the order”, making my order $5.34, with tax. Once it went through, I “handed” the cashier back my imaginary 6-32 nut, explaining that I found that I did not actually need it and got a $0.02 cent refund (it’s the principle). She had a wry smile throughout the transaction.
Clever, yes.
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