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But in this case the state is taking the money..it's not going back to the banks and retailers.
Hmm. Why should it go 'back' to the retailer? They already got money.
Let us see. I go to Best Buy and purchase a $100.00 gift card for my Aunt Tilda. I hand over the $100.00 to the clerk. Clerk gives me a card that is good for $100.00 of goods in Best Buy. I give said card to Aunt Tilda.
So: I am out of $100.00. Best Buy has $100.00, but promises to exchange said gift card for $100 worth of goods to Aunt Tilda.
Now, Aunt Tilda never goes to Best Buy. December 21, 2012 comes around, and she is dead.
I am still out of the $100, although since it was a 'gift' I never expect to see it again. It is no longer my money.
Best Buy still has the $100, in clear profit. However, it is still on their books as an obligation.
A couple more years go by. New Jersey is saying (I guess) that if after a certain date Aunt Tilda or some authorized representative does not appear at Best Buy and demand $100 worth of electronic crap, then they, the State, should have the right to the $100 from Best Buy.
Best Buy had the 'use' of the $100 for several years, earning interest (well, ok, so they earned almost three dollars after five years).
Anyway, this is why I never buy gift cards, and why I regret losing them when they are given to me.
This is outright theft and another example of the government inserting itself into places it has no business being. Gift cards are a contract between the purchaser (or gift recipient) and the retailer. The government does NOT have a right to confiscate anything based on the actions or inactions of the gift card holder. This is just wrong.
NJ Needs to find some other ways to raise cash, but this is NOT the answer.
This is outright theft and another example of the government inserting itself into places it has no business being. Gift cards are a contract between the purchaser (or gift recipient) and the retailer. The government does NOT have a right to confiscate anything based on the actions or inactions of the gift card holder. This is just wrong.
NJ Needs to find some other ways to raise cash, but this is NOT the answer.
What is the answer? Please read my example and tell us what Best Buy should be doing. After all, they (in my example) have my $100 that I gave them in exchange for the plastic card which I then gave to my aunt.
So, years later my aunt dies. Am I suppose to remember the gift card and call up Best Buy and demand that they search the books to see if the card had been submitted?
Is Best Buy suppose to keep an eye on the obits?
Is Best Buy suppose to keep this $100 obligation on their books for, well, how long? Five years? Ten years? Forever?
People scream when a business puts a 'time limit' on gift cards, stating that if the card is not used prior to the expiration of a certain time, then the purchaser of said card, not to mention the recipient (if any) of said card, is out of the money. The value of the gift card simple escheats to the business at the expiration of the set time. Is that what you are in favor of?
Like one other poster pointed out, this method is used in many states concerning old bank accounts, etc. New Jersey is simply expanding it to expired or long dormant gift cards. I agree, it can be spun to sound like a 'taking' by the state government, but on the other side of the coin it prevents unjust enrichment of the business.
And what the hek is next after that! give me a break! Now i have heard of everything, just when you think that you have. What is next, your stash of Food in case of emergency.
What is the answer? Please read my example and tell us what Best Buy should be doing. After all, they (in my example) have my $100 that I gave them in exchange for the plastic card which I then gave to my aunt.
So, years later my aunt dies. Am I suppose to remember the gift card and call up Best Buy and demand that they search the books to see if the card had been submitted?
Is Best Buy suppose to keep an eye on the obits?
Is Best Buy suppose to keep this $100 obligation on their books for, well, how long? Five years? Ten years? Forever?
People scream when a business puts a 'time limit' on gift cards, stating that if the card is not used prior to the expiration of a certain time, then the purchaser of said card, not to mention the recipient (if any) of said card, is out of the money. The value of the gift card simple escheats to the business at the expiration of the set time. Is that what you are in favor of?
Like one other poster pointed out, this method is used in many states concerning old bank accounts, etc. New Jersey is simply expanding it to expired or long dormant gift cards. I agree, it can be spun to sound like a 'taking' by the state government, but on the other side of the coin it prevents unjust enrichment of the business.
Simple, if the card isn't used in five years (or whatever), refund the money to the original purchaser.
I'm sure they keep track of the cards by number or other means. Otherwise, how would the store know what to 'give' the State?
In the past year, NJ has already cut various services, killed a tunnel project that would have created 6,000 jobs, and raised taxes on senior citizens. This move does not surprise me. Politicians in that State will stop at nothing to get money.
Simple, if the card isn't used in five years (or whatever), refund the money to the original purchaser.
I'm sure they keep track of the cards by number or other means. Otherwise, how would the store know what to 'give' the State?
Yep, or it expires and the retailer keeps it.
There is no justifiable cause for government to be involved between the retailer and the consumer. Who are they protecting?
All we have here is another revenue stream for greedy bureaucrats to misappropriate.
If the idiot customers could not spend the money before the expiration the businesses deserve to keep the money.
Idiots? I have often had a gift card from a store where I refused to make another purchase just for the purpose of using up the remainder of a gift card. An idiot would be someone who spends an additional sum of money just to use up the remainder of a card that they didn't pay for in the first place (caveat, as long as the additional purchase wasn't something they intended to buy in the first place).
"Presently any business that sells a gift card is collecting free money on any amount on the card that goes unspent. Under the proposal, the state would collect the money [from the business], and if a card is eventually used by a consumer, the state would return to money to the business. But in the meantime, the state would be investing the money and collecting on the interest. If the card is never fully or entirely used, the state would keep the unspent money and put it toward public services."
"Presently any business that sells a gift card is collecting free money on any amount on the card that goes unspent. Under the proposal, the state would collect the money [from the business], and if a card is eventually used by a consumer, the state would return to money to the business. But in the meantime, the state would be investing the money and collecting on the interest. If the card is never fully or entirely used, the state would keep the unspent money and put it toward public services."
N.J. will have to put another bureaucracy in place or expand one just to handle gift card matters.But hey, you have to spend money to steal money.
And more it's more business friendly legislation that will require the retailer to follow up with the state to apply and wait for their own money back, which will translate into higher overhead and consequently higher prices.
What would we do without our governments watching out for us?
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