The Gift That Keeps On Giving?

--How to spend wisely on gift cards without getting taken

Most of us don’t feel we need guidance on how to spend our money, or our gift cards, but in fact, they can easily go to waste and cause unnecessary stress.

The Federal Trade Commission (FTC), a government agency that works to prevent fraudulent, deceptive and unfair business practices, receives many consumer complaints about the rules and restrictions for using gift cards.

The FTC and counselors at our Consumer Credit Counseling Services (CCCS) agency offer the following suggestions for making the most of these gifts.

Read the terms and conditions (small print). Check for an expiration date or any fees. If you didn’t get the card’s terms and conditions, the original purchase receipt, or the card’s ID number, see if the person who gave you the card has the information and file it.

Treat your card like cash. Make a copy of the front and back of your card when you receive it. If your card is lost or stolen, report it to the issuer immediately. You may be out the entire amount, but some issuers will replace the card for a fee. (If an issuer charges for a replacement card, you’ll most likely need to document the purchase and provide the ID number on the card—here’s where that photocopy or scan of the card comes in handy.)

Use your card quickly. Carry the card with you for convenience. It’s not unusual to misplace or forget you have gift cards. Many businesses issuing cards go out of business leaving their cards useless. And, should your card expire before you’ve exhausted its value, contact the issuer. They may still honor the card. Also spending the card early will help you avoid those annoying inactivity fees.

The FTC is evaluating how consumers can protect their gift card values in case an issuing retailer goes out of business or files for bankruptcy protection. One proposed solution would be to require retailers to separate gift card funds and hold them in a trust account until they are spent. A 2010 law mandates extends the typical expiration dates--a gift card must be good for at least five years.

To lodge a complaint about a gift card issue against a retailer, you may call the FTC at (877) FTC-HELP. For problems with cards issued by national banks, contact the Comptroller of the Currency’s Customer Assistance Group by calling (800) 613-6743.

The credit counselors at our Consumer Credit Counseling Service (CCCS) agency not only offer advice on gift card spending, but also on budgeting, credit and debt repayment. Visit us at www.cccsstl.org or call (888) 656-CCCS for your free.