Avoid Gift Card Glitches

In my junk drawer, I just found an old gift card from a bookstore that I received last year. I was surprised when I read the small print on the back of it, which said if not used within 18 months, $1.50 a month would be deducted from the card's value. According to Gail Hillebrand, a senior attorney with Consumers Union, this will be illegal next year when nearly all service fees for retailer gift cards will be banned in California.

The exception applies to rechargeable cards unused for 2 years, which have a balance of $5 or less. A dollar a month fee may be charged. Be aware that this Christmas shopping season you still have to watch out for fees because the law takes effect January 1, 2004. And remember, you are already protected when it comes to cards expiring. Stores cannot specify an expiration date on gift cards or gift certificates.