Posts Tagged ‘ VISA Gift Cards ’

Gift Cards a Real Gift for VISA…Cha Ching

November 24th, 2010. By LucyC

So—just when you think that banks and credit card companies cannot—could not—would not?—come up with or instigate any further deceptive business practices, they have. Are you sitting down?

A man and a woman in Illinois have filed a class action this week against VISA, Services Credit Union and 1st MidAmerica Credit Union alleging that the companies failed to disclose administrative fees for gift cards. Now, before you blow this off because it doesn’t sound like a big deal—let me tell you, it stinks.

Short version—Karen Rhodes bought her father-in-law, Gene Rhodes, a gift card with a stated value of $50 valid through several months. However, by the time her father-in-law went to use the gift card it was only worth $2! Why? Undisclosed fees charged against the gift card.

The complaint states: “Defendants placed the valid thru date conspicuously on the front of the GiftCard with the intent that plaintiff and all those similarly situated will rely on the valid thru date when, in fact, defendants knew that, due to defendants’ application of Administration Fees, the GiftCard would not retain its stated value through the valid thru date.”

And “On information and belief, and unknown to Ms. Rhodes, at the time of her purchase of the GiftCard, the actual cash value of the GiftCard was only $35.00, due to the Defendants’ application of administrative fees of $2.50 per month prior to the date of purchase.”

In other words the ‘undisclosed fees’ are deducted from the value of the gift card on a monthly Read the rest of this entry »

Tags: 1st MidAmerica Credit Union, Credit Card fees, Services Credit Union, Visa, VISA Gift Cards
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