Sec. 1. 33 MRSA §1953, sub-§1, ¶G, as amended by PL 2003, c. 339, §2, is further amended to read:

G. A gift obligation, 3 years after December 31st of the year in which the gift obligation occurred. A period of limitation may not be imposed on the owner's right to redeem the gift obligation. The amount unclaimed is the face value of the gift obligation, except that the amount unclaimed is 60% of the gift obligation's face value if the issuer of the gift obligation does not impose a dormancy charge. Notwithstanding section 1956, fees or charges may not be imposed on a gift obligation prior to the date that the gift obligation is presumed abandoned pursuant to this paragraph. Fees Following the date of presumption of abandonment, fees or charges may not be imposed on gift obligations unless they those fees or charges are noted on the gift obligation and are in accordance with section 1956. The amount of these charges or fees may not be unconscionable;

SUMMARY

Under current law, a gift obligation, such as a gift certificate or gift card, is presumed abandoned if not claimed by the end of the 3rd calendar year after the date of issue; however, the issuer is prohibited from placing a limitation on the gift obligation. An issuer is allowed to charge dormancy charges or fees if the gift obligation is not redeemed before the gift obligation is presumed abandoned. There is no limit on these dormancy charges or fees. An issuer is also allowed to deduct dormancy charges or fees after the obligation is presumed abandoned; these charges or fees may not be unconscionable.

This bill prohibits an issuer from charging dormancy charges or other fees prior to the date that the gift obligation is presumed abandoned; after that, any dormancy charges or fees imposed may not be unconscionable.