Fed Issues Interim Final Rule Delaying Gift Card Rules

Comments Due:  9/16/10

The FRB has issued an interim final rule delaying the implementation of provisions of Regulation E affecting gift cards.  Originally set to take effect August 22, 2010, the rule delays the effective date until January 31, 2011.

The legislation permitting this extension is known as the "Gift Card Amendment" to the Credit CARD Act.  It allows issuers to take advantage of the delayed effective date if the issuer meets four conditions:

1. Restricts the imposition of certain fees;
2. Does not impose expiration dates;
3. Offers card replacement upon consumer request if unused funds remain on the card; and
4. Provides alternative disclosures via in-store signage, web sites, or by telephone, and so long as the issuer.

http://edocket.access.gpo.gov/2010/pdf/2010-20154.pdf