The new rules on gift cards were issued by the Federal Reserve on 23rd March, 2010, especially to protect the consumers from problems faced by them while using gift cards. These rules apply to retail gift cards only, like the Discover gift card, MasterCard, American Express, and Visa gift cards, etc.

A gift card is the one which looks like a credit card but works like a gift voucher. Gift cards are generally used to pay for purchases. The money available from the card can either be used all at once, or as and when required. Purchases can be done only up-to the value of the card. Banks do issue gift cards, which work as redeemable gift certificates, and transaction fees may be charged on these cards.

However, consumers do face a lot of problem while using gift cars. Some gift cards expire in less than 5 years, some suddenly lose their value. Thus the Federal Reserve has issued some new rules to protect the consumers from gift card scams and problems. The rules will be going in effect from 22nd August, 2010.

The rules are:

1. Card cannot expire in less than 5 years – According to the Federal Reserve, gift cards cannot expire in less than 5 years time. The 5 year duration is calculated from the date of first issuance of the card, or the date when the card was last reloaded.

2. Fees to be disclosed at time of purchase – The rule requires the company to provide the consumer with the details of all the fees at the time of purchase of the gift card.
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Identity theft is fast becoming the most preferred way to take out money from other people’s accounts. Identity thieves use your personal identifying information (PII) to steal money. There are various ways in which identity theft can occur. So it’s better to use one’s credit cards and especially the debit cards cautiously. However, there are ways to recover your credit after identity theft.

The ways to repair credit after identity theft are:

1. Pull your credit report: Pull a copy of your credit report from Equifax, Experian and TransUnion. Check if all the information on the report is correct.

2. Dispute improper listings: Note all the improper listings that you think has appeared as a result of identity theft. Dispute these items with the credit bureaus.

3. Close accounts: Close all those accounts which you think the thieves may have used or tampered with.

4. Keep track of transactions: Keep a track of all the new transactions. Check the statements on these accounts every month.
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From February 22, 2010, some new credit card rules have come into action. These rules will change the working of the financial or rather the credit card market. Life will become easier as the problems regarding debt and credit will eventually lessen. There has been much agitation from summer, 2009 to introduce new rules on credit cards. Some rules like – the credit card companies cannot increase interest rates on existing balance, a notice is to be served before 45 days of changing credit card terms and interests had been introduced in December, 2009. On 22nd February, the rule for saving young college goers from unnecessary debt problems have been been made effective.

The law for those under 21

This law requires that colleges should educate the students about credit cards, its usage and the related problems. It also mentions that this education should include debt counseling programs, to help students deal with the card problems in a much easier way.
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