As we fully immerse ourselves into the holiday season, we get ready to pull out our wallets and cross off our lists of names. But we pose the following question, “are gift cards the latest scam?”

 

No, we’re not talking about credit cards, we are actually talking about gift cards. You know, those perfect stocking stuffers and last minute presents? There are not as innocent as you’d think. You may not know, but gift cards can come with hidden fees. The most famous of fees is known as the “inactivity fee,” usually activated after non-card usage of 12 months; when this happens, the card’s value will decrease on a monthly basis of non-use. In this article, Gift Cards and Bankruptcy, the author discusses a new legislation that seeks to abolish the dormancy fee and other consumer-unfriendly current practices. Read more about it here.

 

And we wouldn’t be prudent unless we sent a friendly reminder about actual credit card fees and penalties that may be brought about during the holiday shopping season. Don’t forget that credit card companies have the right to increase your APR if you make a late payment or after a certain amount of days as set forth in the terms. However, they (and debt collectors) are breaking consumer protection laws if you receive harassing calls about the debt you owe. For more information about credit card / debt collector harassment, or if you think you are a victim of creditor harassment, contact my law firm now at 949-200-8755. We always provide a free initial consultation so you have nothing to lose.