The Senate has passed legislation delaying the implementation of some of the provisions of the Credit Card Accountability Responsibility and Disclosure Act, potentially avoiding the destruction of millions of gift cards.
The bill applies to gift cards produced before April 1, and addresses the rules that require such cards to prominently display expiration dates and other information on the actual card. The Senate approved the bill Tuesday.
Millions of such cards are still on merchants' shelves. The Network Branded Prepaid Card Association had argued that requirements pertaining to the display of expiration dates would result in more than a hundred million gift cards having to being scrapped, and potentially could lead to product shortages during the busy holiday season.
"Right now consumers will be able to buy existing gift cards in the store and realize the full rules and consumer protections of the" CARD Act, Crystal Wright, a spokeswoman for the Montvale, N.J., trade group, said in an interview. "It just gives the industry time to produce the new cards," she said.
Other gift card requirements established by the Federal Reserve, per the CARD Act will still go into effect Aug. 22 as planned.
The House passed the legislation June 14. It must be signed by President Obama before it becomes law.
