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California Gift Card Law: Get Cash Back From Your Gift Cards

Image by ShopDiary. Gift card images from respective retailers.

California shoppers, listen up. As of January 1st, you’ll be able to redeem gift cards for cash if the balance is less than $10, thanks to a new state law, SB250, signed in October. Currently, gift cards worth less than $5 can be subjected to dormancy fees and a store can refuse to give the remaining value back in cash no matter how small the value. Unredeemed gift cards have raked in as much as $8.2 billion for retailers in 2006, according to Sen. Ellen Corbett (D-San Leandro), who authored the bill. The law will apply to any gift certificate or gift card sold after Jan. 1, 1997. Existing state law already prohibits retailers from putting an expiration date on gift cards.

So dig into your wallet, dresser drawers or wherever place you’ve stashed your unused gift cards. If their value is less than $10, you get to claim your cash back. Be vigilant though. As the law is new, some retailers like Victoria’s Secret, may not have gotten the memo and still refuse to give your change.

[via L.A. Times]

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