If A Restaurant Does This To Your Gift Card, It's Probably Illegal

Receiving a gift card to your favorite restaurant is almost like being given cash, with the obvious caveat that you can only use it at one specific establishment. However, it's not uncommon to toss it aside or tuck it into your wallet only to forget about it for a year or two (this is partly why there is so much unspent money on Starbucks gift cards). But does that Starbucks gift card expire, or one to your favorite Italian restaurant, for that matter? It can, but not as soon as you might think.

If a restaurant declines to honor your gift card before it is five years old, it could be violating federal law. When Congress passed the Credit Card Accountability Responsibility and Disclosure Act of 2009, better known as the Card Act, rules were established which companies must follow when issuing gift cards to customers. One of those rules states that gift cards can't expire for at least five years.

Restaurants are likewise forbidden from charging inactivity or dormancy fees during this period, with minimal exceptions. If you notice your balance decreasing without using the card, the restaurant could be violating the Card Act. However, this law applies only to gift cards, not rewards or loyalty cards. It's important to know what you actually have before complaining if issues arise when attempting to use it. If it is a genuine gift card and a restaurant refuses to accept it before that five-year mark, there are steps you can take to try to make things right on your end.

So, you've decided to finally use that old gift card you've had lying around for a year or two and treat yourself to the best fare Texas Roadhouse has to offer (or whichever restaurant you have a gift card for), but your server informs you that it has expired. First of all, refrain from giving them the third degree -– that's only going to make the situation worse for all parties involved. Ask for clarification as to what the problem is. If they aren't sure, politely and calmly ask if a manager could take a look. If the manager also claims the card has expired, you still have some options, though you may be on the hook for the bill for now.

Once you've confirmed there are funds on the card and it is less than five years old, look for a phone number on the back of it to contact the card issuer. If they are unable to resolve the issue, escalate the situation by contacting a consumer protection agency. A call to your state's attorney general's office might be in order as well.  

If none of that is fixing the problem, you're left with two more options. The first is to file a grievance with the Consumer Financial Protection Bureau. Once they receive the complaint, they send it to the company in question, and you will receive a response from them within 15 to 60 days. If that doesn't make things right, your final option is to get in touch with a consumer protection attorney. That will be the most time-consuming approach, but it is an option.