Ask Reggi Your Question Now
Can you summarize NJST 46:30B-42.1?
Presumption of abandonment of stored value card; exceptions; cash redemption.
Short Summary
This legal document governs the presumption of abandonment of stored value cards, exceptions to the presumption, and cash redemption requirements. It applies to issuers of stored value cards and owners of stored value cards. The document specifies that a stored value card with no activity for five years is presumed abandoned. The proceeds of a general purpose reloadable card presumed abandoned are the value of the card on the date it is presumed abandoned, while the proceeds of other stored value cards presumed abandoned are 60% of the card’s value. The document provides exemptions for certain types of stored value cards, such as those distributed under promotional programs or redeemable for admission to events. It also allows issuers to seek reimbursement from the State Treasurer for honoring unredeemed value reported to the Treasurer. Additionally, the document requires merchants to provide cash redemption for stored value cards with a remaining balance of less than $5 upon the owner’s request. Failure to comply with the cash redemption requirement may result in penalties and restitution. The document also includes provisions regarding the validity and expiration of stored value cards, fees and charges, and the definition of terms used in the document.
Whom does it apply to?
Issuers of stored value cards and owners of stored value cards
What does it govern?
Presumption of abandonment of stored value card; exceptions; cash redemption
What are exemptions?
1) stored value cards distributed under promotional, incentive, rewards, or customer loyalty programs or charitable programs without direct monetary consideration, 2) stored value cards donated or sold below face value to nonprofit or charitable organizations or educational organizations, 3) stored value cards redeemable for admission to events or venues or for goods or services in conjunction with admission, and 4) stored value cards issued by issuers that sold stored value cards with a face value of $250,000 or less in the past year
What are the Penalties?
A merchant or other entity required to provide cash redemption for a stored value card with a balance of less than $5 remaining after redemption shall be liable to a penalty of $500 for each violation plus restitution of the remaining cash value on the card. The penalty amount shall be trebled for an aggregate of 100 violations occurring within a 12-month period.
Jurisdiction
New Jersey