Gift cards can have hidden fees

Consumers should read the fine print when they purchase or use a gift card over the holidays as the state attorney general says there is sometimes more than meets the eye in what is considered a safe holiday gift.

Specifically, buyers are warned that some gift cards may expire or decrease in value if not used right away. While state law requires many such cards hold their value for at least two years, there can still be restrictions placed on such cards by the issuer.

?The recipients may not realize there is a time limit or deduction in the value until it is too late,? said State Attorney General Robert E. Cooper Jr. ?It?s important to determine what the terms of the card are up front or you may discover too late you have nothing more than a worthless piece of plastic.?

Among the potential problems are that some merchants deduct a monthly fee from the card or deduct an inactivity fee while others have a expiration date.

Mary Clement, director of the state Division of Consumer Affairs says her office receives numerous complaints during the holiday season about such gift cards with consumers feeling cheated.

?The consumer is left feeling frustrated while trying to determine the policies that can vary from store to store,? said Clement, noting if the disclosure of policy is not clearly stated on the card or packaging, then a complaint against the store can be made to her office.

To avoid such problems, she recommends consumers specifically ask about any inactivity or monthly fees or expiration dates before purchasing such cards. It is also a good idea to ask about the policy in case a card is lost or stolen and where to address any problems which the consumer may incur. It is also a good idea to find out at which locations the gift cards are accepted if it is bought from a chain store.

Complaints concerning gift cards may be directed to the Tennessee Division of Consumer Affairs at 1-800-342-8385.

Gift cards can come with some fine print:
? Some gift cards charge a monthly fee
? Some expire quickly
? Some can?t be redeemed at every store in the chain