The Gift That Keeps on Taking

Chances are this holiday season, along with the new set of earbuds you got for your iPod and the big bulky crock pot you have no place to store, at least one of your present-giving loved ones bought you a gift card.  Nothing wrong with that, of course, unless, you got one of those pesky cards with hidden “inactivity” fees—in which case, you may eventually find yourself part of a class action lawsuit.  At least, that’s what happened to a group of consumers in Connecticut who were given Crystal Mall gift cards between 2003 and 2005.

That’s because the mall’s owners violated Connecticut law by charging $2.50 per month in “administrative” fees on cards that weren’t fully redeemed after six months.  Luckily, Connecticut AG Richard Blumenthal was on the case and took the mall owners to court, eventually negotiating a settlement for about $309,000 to help the “thousands” of consumers who lost money in the scam.  As a result, those consumers are now owed somewhere between $2.50 and $50 each.

Unfortunately, this story ends in a happy/sad sort of way.  To circumvent the efforts of AG Blumenthal, the mall owners have now begun issuing gift cards from a national bank, which is immune from state lawsuits.  Nevertheless, Blumenthal is hoping to stop the company’s end run around Connecticut law by encouraging the legislature to pass a bill that requires those making the end run to post prominent warnings that their crumby gift cards are subject to ridiculous fees (or something to that effect).

So enjoy those gift cards in 2009, civil justice fans!  But be sure to enjoy them fast!  Happy New Year from ThePopTort!