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Bureau Considers Enforceability of State Unclaimed Property Laws for Gift Cards

Posted in Bureau of Consumer Financial Protection (CFPB), Payment Systems, Preemption & Federalism

By: David L. Beam

The gift card provisions of the Electronic Funds Transfer Act (“EFTA”) and Regulation E (which implements the EFTA) do not allow funds on most gift cards to expire sooner than five years after issuance (or, if the card is reloadable, five years after the last load). But the unclaimed property laws in some states require gift card issuers to turn over the funds on dormant gift cards sooner than five years after the last activity.