Representative Dave Gassman (D-Canova) is first out of the District 8 gate with legislation for the new session. KJAM reports this morning that Rep. Gassman is out to clamp down on the abusive fees and other trickery engaged in by the plastic money industry.
No, Gassman isn't going kamikaze on Denny Sanford and the other big usurers South Dakota loves. Gassman's bill targets the gift card industry, not the credit card industry. Evidently nine states have legislation banning gift cards that "expire, carry fees, or decline in value over time" ["Gassman Has Plans for Session," KJAMRadio.com, 2008.01.02]. Gassman's bill isn't up on the LRC website yet, but if you're really interested, you can look at summaries of comparable statutes around the rest of the country at the National Conference of State Legislatures website. Arkansas, for instance, prohibits retailers from setting expiration dates less than two years from purchase. Arizona simply requires disclosure of the expiration date and any fee structure.
No response yet from the South Dakota Retailers, who might have a nanny-state argument, if they think this small-potatoes legislation is worth the effort. And no word yet on the terms and conditions of gift cards from the Central Farmers Co-op in Canova.
With just 357 shopping days left until Christmas (it's a leap year, so you get an extra day to shop), the Madville Times reminds its loved ones that if you aren't sure what gift to buy, just cut out the middle man completely and give cash... or homemade cookies.
Wasn't this tried about a decade ago?
ReplyDeleteIf Rep. Gassman really wants to save South Dakotans money, he should introduce legislation that restricts SD credit card companies from increasing a person's interest rate on a credit card simply because they were late on another card or because a car payment shows up late on their credit report. That has to be the most unfair business practice I've ever seen! Not to mention the practice of varying due dates each month on credit card bills in an effort to collect more late payment fees and increase your card's interest rate. Some people I've spoken to are paying over 30% due to these practices. There's no way anyone can dig themselves out at 30% interest. Rep. Gassman should introduce legislation to moderate our credit card industry instead of worrying about a buck or two on a gift card that cost the recipient nothing. It is the difference between thousands of dollars and millions to South Dakotans.
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