can prepaid services expire in california

However, cards with a balance of less than $10 may be redeemed for the remaining value if the consumer asks. It is not legal advice or regulatory guidance. For families, Boost knocks $5 off the cost of lines for its 3GB plan. Since you know your customer's address, you should use her address to determine if the 911 surcharge, 988 surcharge, and local charges apply. A recently adopted California law is intended to help gift certificate and gift card holders when the seller declares bankruptcy. Best Prepaid Phone Plans for Seniors. The United States, its unincorporated agencies and instrumentalities, or any state of the United States; Any incorporated agency or instrumentality of the United States wholly owned by either the United States, or a corporation wholly owned by the United States; The American Red Cross, its chapters and branches; Banks, including national banking associations, located within the limits of California; Enrolled Indians who are service users subscribing for service from within the limits of an Indian reservation; Federal credit unions organized in accordance with the provisions of the Federal Credit Union Act; Insurance companies, including title insurance companies, that pay the California gross premium insurance tax. If you purchased prepaid MTS from a service supplier, you may contact your service supplier to request a refund of the 911 and 988 surcharges and/or local charges. Ask about the seller's redemption policy. Get the best pay as you go phone plan or prepaid phone plans with the latest phones. 10California Civil Code Sections 1749.5(a)(1),(f). 4California Civil Code Section 1749.5(b). Your customer's billing address is in Sacramento, California. Access lines when imposition of the surcharge would be in violation of the Constitution of the United States, the United States Code, or the laws of the State of California. You sell a SIM card (starter kit) without any prepaid minutes or airtime. AT&T prepaid cellular Plans do not sell service by the minute. We have compiled a list of helpful resources for service suppliers. Are a "gift certificate" and a "gift card" the same thing? Your customer provides you an address in California during the sales transaction (for example, a billing address). "What the consumer is buying is the play pass itself," he said. But what about the sale of a $100 card good for 5 workouts to the gym? Click here to buy cards for your business. A. CorePower Yoga structured their gift certificates slightly differentlyi.e., the passes to yoga classes were not tied to any specified dollar amount. Funds deposited expire according to how much refilled. In a 2016 report by the Consumer Financial Protection Bureau, some consumers complained that they had money on their cards when they expired but the issuer didn't reissue cards that included those balances. . California Business and Professions Code Section 17538.9 permits certain fees and practices with respect to prepaid calling cards. Prepared by: John C. Lamb, Senior Staff Counsel, Legal Services Unit, January 2004; Revised by Norine Marks, Senior Staff Counsel, July 2008; revised by Claire Yazigi, Staff Counsel, December 2010. However, you can restore your expired balance if you refill within 7 days after your anniversary date, as we understand life can get busy. Both Californian and federal law prohibit the sale of gift cards and certificates in a deceptive manner, so the company or person selling the card can't conceal fees, conditions or restrictions. No cash or ATM access. 2015 CBS Broadcasting Inc. All Rights Reserved. Your customer also provided you a cell phone number that is associated with a location in California; however, your customer did not provide her address and you do not have a record of her address. The undersigned certify that, as of June 18, 2021, the internet website of the California Department of Tax and Fee Administration is designed, developed and maintained to be in compliance with California Government Code Sections 7405 and 11135, and the Web Content Accessibility Guidelines 2.1, Level AA success criteria, published by the Web Accessibility Initiative of the World Wide Web Consortium. Gift certificates and gift cards are covered by statutes setting these basic rules:2, FREQUENTLY ASKED QUESTIONS ABOUT GIFT CERTIFICATES AND GIFT CARDS, Q.1. California laws governing gift cards and gift certificates cannot be waived. Int'l. services extra. Account Sign InIniciar sesin. If the rate under the ordinance is less than one dollar ($1) per month per access line, including any adjustments for inflation, the new rate is 0 percent. Although your customer intends to use the SIM card and minutes outside of the U.S., the 911 surcharge, 988 surcharge, and local charges (if applicable) apply because the sale was made at your California store. The amounts for the 911 surcharge, the 988 surcharge, and local charges should be separately stated on the invoice, receipt, or other similar document that is provided to the prepaid consumer, or otherwise disclosed electronically to the prepaid consumer, at the time of the retail transaction. Receive 24-Hour Roadside Assistance. Ask the seller about its policies on returning merchandise. If you cancel a monthly subscription, it immediately moves to the Disabled stage on the date you cancel it. 1 in our ratings of the Best Cheap Cell Phone Plans of 2023, the Best Prepaid Cell Phone Plans of 2023, and the Best . can prepaid services expire in california. The key takeaway was that the federal CARD Act applies to gift cards and other certificates that are linked closely to a specified cash dollar amount. Spengler Agans Bradley offers a flat-rate legal checkup for startups and business needing a broad, overall legal review of their business and business practices. The 911 and 988 surcharges apply to partial month billings in the full amount. A gift certificate or gift card without an expiration date is valid until it is redeemed or replaced.20, Notwithstanding any policy of the seller, effective January 1, 2008, a gift certificate with a cash value of less than ten dollars ($10) is redeemable in cash (not a new certificate or merchandise) for its cash value.21 Cash for purposes of this section includes currency or check.22 Where a seller accepts funds toward a gift certificate from one or more contributors as a gift for another person (the "recipient"), the seller must give each contributor a full refund of the amount paid toward the certificate if the time in which the recipient may redeem the funds by purchasing a gift certificate is clearly disclosed in writing to contributors and recipient and the recipient does not redeem the funds by the time disclosed.23. Under the law, a gift card cannot expire until at least five years from the date it was activated. In general, there are three circumstances under which a retail sale of prepaid MTS occurs in California and is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). The cell phone and prepaid airtime minutes are sold for a single price of $119.99 (bundled transaction); however, you provide your customer with an invoice that states that the actual selling price of the cell phone is $99.99. However the California law does not apply to multiple retailer gift cards such as mall gift cards or bank gift cards including Visa and MasterCard gift cards. A. The gift certificate law states that a seller must either redeem a gift certificate or gift card sold after January 1, 1997, for its cash value, or replace it with a new certificate or card at no cost.18 However, California's Legislative Counsel has concluded that a seller is not required to redeem a gift certificate in cash when requested by a consumer.19 Thus, some gift certificate sellers redeem the gift certificate for cash or a combination of merchandise and cash, while some issue a new certificate for any balance remaining after the original certificate is redeemed. As with sales and use tax, the local charge rate varies depending on the location of the sale and in some instances local charges will not apply (for example, sellers with de minimis sales of prepaid MTS of less than $15,000 during the previous calendar year are not required to collect local charges). Because you know your customer's address, you should determine if the 911 surcharge, 988 surcharge, and local charges apply based on the address, not on your customer's mobile number. Benefits of a prepaid cell phone. $40/mo. Give Congratulations to Someone You Know with These Thoughtful Gift Ideas. Gift card funds must be good for at least five years under federal law, and some states laws give you more time. In general, you should charge and collect local charges for the city and/or county where your business is located. Federally regulated financial institutions can only set expiry dates on certain cards and only under certain conditions. However, California does require expiration dates be printed on the card. We brought the issue to consumer attorney Ian Barlow. While a SOUL30 pass could be used to reserve a bike for a spin class in San Francisco, it could not be used to reserve a bike in not New York. The store may redeem it for another card with the remaining value. Q.7. They do, however, apply to any gift certificate that lawfully contains an expiration date.26. 9One argument has been made that sellers in a single mall are actually "affiliated" under the law because they have each agreed to honor the cards. Does an unredeemed gift certificate escheat to the state? This depends on the policy of the seller. Any gift certificate sold after January 1, 1997, is redeemable in cash for its cash value, or subject to replacement with a new gift certificate at no cost to the purchaser or holder. Under federal law, inactivity fees can only be charged after 12 months of inactivity and if other conditions are met. These include cards with a value of $5 or less; when the fee is $1 or less per month; if the card has been inactive for 24 consecutive months; or a card can be re-charged by the owner with a value to over $5. As a result, you'll find such fees and restrictions apply to most of these cards. 16California Civil Code Section 1749.5(a)(2). The cell phone and 10 minutes of prepaid airtime are sold for a single price of $59.99, and the customer is required to purchase the minutes with the cell phone as part of a package deal (bundled transaction). Before you buy, know the return and exchange policy. 27For example, a supermarket such as Safeway may sell Borders gift cards usable only for merchandise at Borders stores. If you purchased prepaid MTS from a retail seller and were charged the incorrect 911 surcharge, 988 surcharge, and/or local charge rate, you may file a Claim For Refund or Credit with CDTFA. We're the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly. Enforcing and auditing the collection and remittance of local charges on prepaid MTS by service suppliers (see. This document may be copied if all of the following conditions are met: the meaning of the copied text is not changed; credit is given to the Department of Consumer Affairs; and all copies are distributed free of charge. In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circumstances), and if the balance on the card is less than $10, you can redeem it for cash. An exception to these rules applies to gift cards for food (excluding restaurant meals). Such large type should make it easier to spot. These rules have no effect on service fees imposed before January 1, 2004. The Gift Card Granny Mastercard Gift Card and Mastercard Virtual Gift Card are issued by Sutton Bank, Member FDIC, pursuant to a license by Mastercard International Incorporated. What makes everything a lot more complicated is the fact that depending on the state you're in, laws regulating gift cards can change quite a bit. While the card allows the recipient to shop a variety of stores, the value of the gift card may be reduced or eliminated by expiration dates and dormancy fees. The Civil Code also is available on the Internet at http://leginfo.legislature.ca.gov/ under the "California Law" button. The law prohibits offering any gift certificate, store gift card, or general-use prepaid card with an expiration date of less than five years. The rules for gift cards are different. The Visa Gift Card can be used everywhere Visa debit cards are accepted in the US. Distributed by the issuer to a consumer without charge under an awards, loyalty or promotional program; Donated or sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes, if the expiration date is 30 days or less after the date of sale; The value remaining on the gift card is $5.00 or less each time the fee is assessed; The dormancy fee is $1.00 per month or less; The card has been inactive for 24 consecutive months (for example, no purchases, "reloading," or balance inquiries); The holder may reload or add value to the card; The card has printed on it a statement in at least 10-point type stating the amount and frequency of the fee, that the fee is triggered by inactivity, and at what point the fee will be charged. If a gift certificate or gift card has a low balance, make a purchase with it and pay the difference out-of-pocket. Sellers that file "Chapter 11" (reorganization) bankruptcy intend to stay in business, so they typically will ask the bankruptcy court for permission to honor gift certificates in an effort to maintain good customer relations. Sufficient funds must be added within 60 days of suspension or acct. Think of Netflix, Dollar Shave Club, Blue Apron, and what feels like hundreds of monthly "boxes" delivering everything from clothing, to vinyl records, to wine. A gift certificate or gift card sold by a seller that seeks bankruptcy protection may have no value. . Several exceptions apply. In addition to the cost of the funeral, you should expect to pay some other fees. The price of the cell phone component of the bundled charge is disclosed to the prepaid MTS consumer on a receipt, invoice, or other written documentation provided to the prepaid MTS consumer. This was passed in 2009 to limit abuse of consumers by credit card companies and banks. 10-digit Wireless Number. Banks can also charge fees for purchases, monthly activity, inactivity, transaction, balance inquiry and replacement. Q.8. First, sales of prepaid MTS from your California business location are subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). If you purchased prepaid MTS and overpaid the 911 surcharge, 988 surcharge, and/or local charges, you may file a claim for refund. 3. Note: Unless there is a separately stated charge for the SIM card, sales tax generally does not apply to the prepaid SIM card sold with minutes or airtime since the SIM card (tangible personal property) is typically considered incidental to the sale of the minutes or airtime. Just like 7-Eleven SpeakOut's plan, this is a great option for an emergency phone or to keep in contact with a child or elderly parents. As the court wrote, SoulCycles sale of classes are tethered to a specific monetary value of the class being purchased and in this way the SOUL30 and SOUL34 passes more closely resemble a certificate redeemable for a spa treatment up to $50 rather than merely a spa treatment. This was enough for the court to deny SoulCycles motion to dismiss. State of emergencies declared in California for the past three years. 18California Civil Code Section 1749.5(b)(1). The Visa Gift card is an ideal choice for birthdays, holidays, weddings, and suits all your gift-giving needs. The law prohibits offering any "gift certificate, store gift card, or general-use prepaid card" with an expiration date of less than five years. Businesses also are increasingly offering their customers the option to buy packagesfor instance, a pack of 5 classes at your local gym. Prepaid wireless refill or top-off cards. Additional Public Benefit Programs . Verizon - Best Prepaid Plans With Loyalty Discounts. Return to myAT&T. The sales are made at your California store. Rates are subject to change without prior notice. The 911 and 988 surcharges apply to all telecommunication access lines with the exception of: Because medical alert devices and inmate call systems generally do not provide access to the 911 emergency communications system or the 988 suicide and crisis lifeline, the 911 and 988 surcharges usually will not apply. (Statutes 2003, chapter 116, Section 4 (AB 1092).) The invoice, receipt, or other similar document must show the amount of the prepaid smartphone (cell phone), the amount of the 911 surcharge ($0.30), the amount of the 988 surcharge ($0.08), the amount of local charges ($2.00), and the amount of sales tax ($9.00) at the time of the retail sale of prepaid MTS. For the same reasons asserted in the Legislative Counsel opinion referenced in endnote 16, in our opinion, whether the value of the gift certificate is redeemed in cash or by check would be dependant upon the policy of the seller. Bankruptcies: When Circuit City closed its doors in 2008, the value of gift cards for those stores disappeared. What Does the Expiration Date Mean on a Credit Card? In California, for example, it's against the law for store gift certificates and gift cards to have an expiration date or dormancy fees (except under certain circumstances), and if the balance on the card is less than $10, you can redeem it for cash. Funds on the cards don't expire, though. Therefore, the local charges do not apply because there is only a minimal amount of prepaid wireless minutes/airtime included in the bundled transaction. Each access line for each month or partial month for which a service user subscribes with a service supplier. In this respect, California law is more consumer friendly than the federal law. While those cards could not contain any expiration date or fees, there may be a question about where any unspent portion can be redeemed. Entrepreneurs should consult with a business attorney before proceeding down this path. It places No. In the period leading to the rules, regulators fretted that. Compare two recent cases of fitness companies who sold class packs to customers and faced lawsuits over alleged violations of the CARD Act: SoulCycle, a nationwide operation of indoor spin cycling studios, and CorePower Yoga, a yoga studio chain. Services are scheduled only after payment is received. The CARD Act sets new laws on things like credit cards, but also gift certificates. Also, ask about any service or dormancy fee. CorePower Yoga successfully defended an attempted class actionand the case was dismissed early in the litigation. The CARD Act provides a compelling case study into the need for every small business owner to hire a good business law attorney. For this Internet sale, you should charge and collect the 911 surcharge, the 988 surcharge, and the local charges at the rate in effect for the City and County of San Francisco, indicated on the billing address provided by your customer. 5California Civil Code Section 1749.51. Refunding taxes when ordered to under the local ordinance. First, not covered by the law were gift cards that could be redeemed for a specific good or service, or experience, such as a spa treatment, hotel stay, or airline flight. By comparison, the law does cover gift certificates that can be applied toward the purchase of a specific good or service, such as a certificate or card redeemable for a spa treatment up to $50.. However she noticed the card had an expiration date after six months. If the recipient can only redeem the gift certificate or gift card for merchandise, or for a particular kind or class of merchandise, does this affect your decision to purchase or give the certificate or card? This sale is subject to the 911 and 988 surcharges since your records (that is., the customer's billing address) show that customer is located in California. (877) 328-9677, or contact your county social services agency. DCA licensed professionals are being targeted by a new scam. It is the opinion of this office that, where the laws are inconsistent, the law that is most protective of consumers should be followed. The amount of prepaid wireless minutes/airtime is a minimal amount, that is, $5 or less, or 10 minutes or less, or. Use any remaining value on a gift certificate or gift card. It's not like a credit card is a bunch of bananas that will eventually go bad, so why can't you keep using the card forever? Passports. The price of the cell phone component of the bundled charge is disclosed and provided to the prepaid MTS consumer on a receipt, invoice, or other written documentation. Prepaid wireless cards compatible with pay-as-you-go cell phones. When a store clearly displays a limited or no-refund policy, however, refunds and exchanges are not required by law. The total selling price of the SIM card with prepaid airtime is subject to local charges because the price of the airtime is not minimal and cannot be identified since you didnt keep books and records indicating the standalone price of the airtime. A recipient who redeems a gift certificate or gift card for merchandise will be subject to those policies.

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