Certificate expired gift restaurant

[ Q: Gift cards ... ]

Q: Gift cards

I received a Charter One gift card, misplaced it and found it. I called the number on the card. It has expired. The charges have built up to the point that now all that's left is $15 out of $40. While I was at the store, a lady told me she'd seen a column in Ask Us with regard to this very same issue and the fact that California has a law against charging fees on gift cards. I called the company. A representative said that the company's in Ohio, we're in California and it wouldn't make any difference. Can you fill me in on this matter?

-- SHIRLEY STRICKLAND

Torrance

California law does restrict expiration dates and dormancy fees on most gift cards, but that applies to cards purchased in the state, said a spokesman for the California Department of Consumer Affairs.

If the gift card was purchased outside of California, the state has no jurisdiction, spokesman Russ Brown said. In addition, gift cards issued by a banking institution are allowed to charge fees, which can be monthly and which can be considerable, Brown said.

Most gift certificates sold in California cannot have an expiration date under state law. Exceptions include:

* Gift cards that can be used with multiple sellers of goods or services that are not affiliated.

* Freely given, unsolicited gift certificates issued as part of an awards, loyalty or promotional program.

* Those "sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fund-raising purposes if the expiration date on those gift certificates is not more than 30 days after the date of sale."

* Gift certificates for food products. Restaurant gift certificates do not fall under this exception.

In each of these exceptions, the expiration date must be printed on the front of the gift certificate. In the last three, the cards must have been sold after Jan. 1, 1998, and the expiration date must be in at least 10-point type on the front of the card.

According to California Civil Code Section 1749.5, gift certificate issuers who receive money from more than one person for a gift certificate for a recipient may include a redemption date as long as the issuer provides a full refund to contributors if the gift certificate is not used in the proscribed time.

The state Civil Code does allow a dormancy fee on a rechargeable gift card under specified conditions:

* The remaining value on the card is $5 or less each time the fee is assessed,

* The fee is $1 per month or less.

* The card has been inactive -- no purchases, reloading the card or no balance inquiries -- for 24 consecutive months.

* The card must contain information in at least 10-point type stating the amount and frequency of the fee, that inactivity triggers the fee and when the fee will be charged. This information also must be visible to the buyer before the card is purchased.

-- Stephanie Walton

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