Fed cracks down on gift card abuses

WASHINGTON (AP) – The Federal Reserve has issued new rules to
protect Americans from getting stung by unexpected fees or
restrictions on gift cards.
Under the new rules, consumers must have at least five years to
use the gift cards before they expire. The Fed also says service or
inactivity fees can be imposed only under certain conditions.
Such fees can be charged if the consumer hasn’t used the card
for at least a year, if the consumer is given clear disclosures
about them and no more than one fee is charged a month.
The rules take effect Aug. 22. Congress ordered the Fed to issue
the new provisions under a law enacted last year.