A new law enacted by the Credit CARD Act aims to make gift cards more consumer friendly this holiday season.  The new regulations require gift card issuers to have gift card expiration dates be no less than five years.  It also prohibits card issuers from implementing an inactivity fee unless the card has not been used for at least a year.  Gift card issuers can no longer charge a replacement fee for stolen or lost cards. 

For Chalona Haskins, this is excellent news.  She is well aware of how often gift cards expire and how much inactivity fees can accumulate.  Haskins said, "I have friends that say they've had gift cards from last Christmas and hadn't used them yet and now can't use them because they expired."

Although these changes are greatly beneficial to the consumers, those considering purchasing gift cards this year should still be aware of their many drawbacks.  For instance, many cards have purchase fees that can range from three to seven dollars.  Consumers should also be aware that though inactivity fees are restricted, that are not eliminated and still can be imposed.  There are certain gift cards available that does not impose inactivity fees.  American Express would be an example. 

Buyers should also take caution in buying gift cards from businesses in financial trouble.  The CARD Act has no provisions that will protect consumers in these circumstances.