can prepaid services expire in california

10California Civil Code Sections 1749.5(a)(1),(f). When local charges apply, the charges are applied as a percentage, to the selling price. CorePower Yoga successfully defended an attempted class actionand the case was dismissed early in the litigation. NOTICE: We attempt to make our Legal Guides accurate as of the date of publication, but they are only guidelines and not definitive statements of the law. devices). 1488 (February 11, 1997) Gift Certificates. An issuer may accept funds toward the purchase of a gift certificate from one or more contributors as a gift for another person (the "recipient"), and may require a date by which the recipient must redeem the funds. 1.09 = $64.21 (this is the selling price of the phone without the sales tax). By giving a gift certificate or a gift card, you make it possible for your friend to purchase the particular item or product that he or she wants. While such an argument could be made on the face of Civil Code section 1749.45(a), such fees could in fact use up the value of the card, violating the spirit of the law. In general, purchasers of prepaid data plans, including prepaid plans marketed as data-only plans provide their wireless (cell phone) number when purchasing the plans. Toll lines used in the collection and dissemination of the news for public press. Because your records show your customer is located in California, the 911 and 988 surcharge apply, even though your customer has a mobile phone number not associated with a California location. 4. What Does the Expiration Date Mean on a Credit Card? For families, Boost knocks $5 off the cost of lines for its 3GB plan. Yes, it is perfectly legal. Unused prepaid services expire 12/31/23. 11California Civil Code Section 1749.5(d). Gift Card Granny examined these laws for California's shoppers. The following table explains what you can expect when a paid Microsoft . This avoids the problem of spending additional money on a purchase when it's difficult to find merchandise priced lower than $10. This depends on the policy of the seller. California Civil Code 1749.45-1749.6 . 25 GB - $60/month per line. 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. Daily deals like Groupons allow you to use the original amount you paid into them after. 2004 ch 319 (AB656) [Assembly Floor analysis August 11, 2004].) You may also try to close out your account by requesting that your balance be mailed to you in the form of a check. That is, prepaid passes that can be redeemed for a specific number of exercise sessions. In our opinion, any seller that accepts the card should be able to redeem the unspent portion. Daily deals like Groupons allow you to use the original amount you paid into them after they expire. The Civil Code also is available on the Internet at http://leginfo.legislature.ca.gov/ under the "California Law" button. Give Congratulations to Someone You Know with These Thoughtful Gift Ideas. A. There are multiple ways you can check your balance conveniently 24/7 for free, including through push notification, text, or email: Online: visit EIPCard.com and access your account information (account registration required); By Phone: call 1-800-240-8100 (TTY: 1.800.241.9100) and use the automated voice response system Toggle Navigation. We offer 4 prepaid data plans for tablets and mobile hotspots. They also should never have fees. In the new on demand economy, subscription-based revenue models, or subscription plans, have grown in popularity. These include access lines to: (See Revenue and Taxation Code (RTC) section. The 911 and 988 surcharge apply to all telecommunication access lines (wirelines, postpaid wireless lines, and VoIP lines) subscribed in California that allow the user access to the 911 communications system and 988 suicide and crisis lifeline. A recipient who redeems a gift certificate or gift card for merchandise will be subject to those policies. AT&T prepaid cellular Plans do not sell service by the minute. To contact us, or to sign up for our newsletter, please visit our Contact page or reach out to the relevant attorney directly through their bio page. Yes, they do. The contract must have complete details of the transaction and full disclosure of any credit terms. Such gift cards may have expiration dates if that fact is printed in 10-point type on the front of the card. Offer terms at time of plan activation apply, regardless of purchase date. A Private Branch Exchange (PBX) phone system is commonly used in many business environments where multiple access lines are needed. 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. Please make sure to check out our resources for sellers (above) if you are a service supplier that also makes retail sales of prepaid MTS to prepaid MTS consumers. Where you submit your claim depends on the reason for the refund and where the purchase was made. For postpaid accounts, check out T-Mobile eSIM. Can the holder of a gift certificate or gift card redeem it for cash? The fatal flaw was that the passes for the spin classes too closely tracked a cash value. He says Climbaroo may consider having some flexibility with that date to keep customers happy. "What the consumer is buying is the play pass itself," he said. 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. You sell a SIM card (starter kit) without any prepaid minutes or airtime. The Visa Gift card is an ideal choice for birthdays, holidays, weddings, and suits all your gift-giving needs. CorePower Yoga structured their gift certificates slightly differentlyi.e., the passes to yoga classes were not tied to any specified dollar amount. If you opt to make monthly installments, expect to pay $125-$300 per month depending on the total cost, age, and installment period. Potential risks lies in the Credit Card Accountability Responsibility and Disclosure Act, i.e., the CARD Act. Sales tax applies to the $99.99 selling price of the cell phone. The amount of prepaid wireless minutes/airtime is a minimal amount, that is, $5 or less, or 10 minutes or less, or. California Business and Professions Code Section 17538.9 permits certain fees and practices with respect to prepaid calling cards. Nmero. Because you do not know your customer's address, you must rely on her mobile phone number to determine if the 911 surcharge, 988 surcharge, and local charges apply. Can prepaid cards expire? April 22, 2015 / 6:41 PM The court found that the SOUL30 pass looked less like a prepaid spin class (not covered by the CARD Act) and more like a $30 gift card that could be applied toward the purchase of a spin class (covered by the CARD Act). The content on this page provides general consumer information. I" want to continue going there my child loves to go there, but I don't want them to expire and i don't want to lose the money.". A gift certificate or gift card cannot contain a service fee, including a fee for dormancy (non-use).16. Should You Give Someone a Gift for Saint Patricks Day? The Virtual Visa Gift Card can be redeemed at internet merchants everywhere Visa debit cards are accepted in the US. 28California Civil Code Section 1749.45(a). You may also try to close out your account by requesting that your balance be mailed to you in the form of a check. The rules for gift cards are different. You sell a prepaid wireless refill card online that is loaded with 400 prepaid wireless minutes to your customer who downloads it directly to his cell phone. Plans, rates & services are subject to change without notice & are not available in all locations or for all phones. Unfortunately, card holders are considered unsecured creditors and usually sink far down on the list of creditors. The app can only activate a T-Mobile prepaid line. Senior operations manager Paul Benvenuti says they have "extended the expiration date on dozens of VIP passesThe last thing we want is for someone to purchase a pass and not be able to use all the visits.". . 17California Civil Code Section 1749.5(e). Firstly, there are some federal laws which apply across the board. The sales price used to compute the local charges (if applicable) depends on whether the price of the prepaid wireless minutes can be identified from your books and records or if the amount of prepaid wireless minutes sold is minimal. 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 entire selling price is subject to any applicable local charges unless you can identify the price of the SIM card (from your books and records kept in the ordinary course of business) or the amount of prepaid wireless minutes/airtime is a minimal amount, that is, $5 or less, or 10 minutes or less. In some cases, when your prepaid card expires, you might have to pay a fee so that you do not lose your money. Refunding taxes when ordered to under the local ordinance. For PREPAID Services call us at 1-888-482-FIDO. 2 lines $80 3 lines $120 $90 4 lines $160 $100 5 lines In addition, you can find primary contacts for each practice area by visiting our Areas of Practice page. Cal. For example, on money orders more than a year old, WesternUnion charges a $2-per-month service fee for each month after the first 12 up to a maximum of $144. Searches are limited to 75 Shop for Verizon prepaid data plans: 5 GB - $40/month per line. A recently adopted California law is intended to help gift certificate and gift card holders when the seller declares bankruptcy. Features available until 30th day; if sufficient balance, services automatically renew at expiration. The Attorney General's Opinion concluded that a gift certificate for a meal sold by a restaurant may not contain an expiration date. It appears to be a possibility, although the holder may not demand it. The amount of airtime in the bundled transaction is not considered minimal because it is more than 10 minutes. They are prepaid debit cards onto which a government agency loads funds directly and you can use them just like traditional debit cards. Consider purchasing a gift certificate or gift card from a retailer for use with it and its affiliates. Can the holder of a gift card that is subject to a service fee use it to purchase a gift card that is not subject to a service fee? Assembly Bill 988 (Stats. The escheat laws do not apply to gift certificates subject to the rules discussed above. State of emergencies declared in California for the past three years. Those people communicated as they wanted without the concern of being locked into a multi-year contract. In this respect, California law is more consumer friendly than the federal law. Law Advice; Insurance Advice; Retirement Planning Advice for Women; 10 Tips for Filing a Catastrophic Injury Laws 23California Civil Code Section 1749.5(f). 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? 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.. A seller of these unaffiliated, multiple seller cards may take the position that such cards without an expiration date are exempt from the definition of "gift certificate" under Civil Code section 1749.45(a), and therefore service fees or dormancy fees can be imposed and do not have to be disclosed. The 911 Surcharge rate, 988 Surcharge rate, and local charge rates may be viewed on our webpage (see 911 Surcharge, 988 Surcharge, and Local Charge Rates for Sellers of Prepaid Mobile Telephony Services (MTS)). Businesses also are increasingly offering their customers the option to buy packagesfor instance, a pack of 5 classes at your local gym. Get the best pay as you go phone plan or prepaid phone plans with the latest phones. Prepaid services remain with the service address originally purchased for & are NOT transferable to another service address during the same season in which they were purchased. You want to give a friend a gift, but your friend "has everything" or you don't know what to give. We'll issue you a replacement Gift Card free of charge if your "valid-thru" date has passed and you still have available funds remaining. If a gift certificate or gift card has a low balance, make a purchase with it and pay the difference out-of-pocket. Federally regulated financial institutions can only set expiry dates on certain cards and only under certain conditions. 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. Additional Public Benefit Programs . You should weigh the benefits of these cards against the cost. Expiration dates, service fees and dormancy fees are prohibited by law for single-store cards, with limited exceptions. 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. How can I check the current balance in my EDD Prepaid Debit Card account? Additionally, you should charge your customer local charges at the rate listed for the city of Sacramento (if any). 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. If your prepaid card expires while you still have money on it, you may be able to request a replacement card to access the funds. You can top up your account at any time online or at any of Petro-Canada's 1,800+ stations found across the country. The EBT system is used in California for the delivery, redemption, and reconciliation of issued public assistance benefits, such as CalFresh, CalWORKs, and other food and cash aid benefits. However, prepaid telephone calling cards that allow the purchaser to use minutes from either a landline or a cell phone by calling an 800 number, or by PIN-less calling are not subject to the 911 surcharge and 988 surcharge of local charges. Are a "gift certificate" and a "gift card" the same thing? An expiration date on a credit card is simply the date on which the card itself will no longer work and must be replaced. This exception is applicable only provided that each contributor is given a full refund of the amount paid where: the funds are contributed for the purpose of being redeemed by the recipient by purchasing a gift certificate; the time in which the recipient may redeem the funds is clearly disclosed in writing to the contributors and the recipient; and the recipient does not redeem the funds within the time disclosed. Atty. Specified tangible and intangible personal property that is held or owing in the ordinary course of business and remains unclaimed by the owner for more than three years escheats (reverts) to the state. This law, however, has a number of exceptions that allow expiration dates or service fees, which include: Cards issued by a bank or other financial institution that can be used at multiple locations, provided that the issuer discloses any expiration date and fees associated with the card. For complete terms and conditions, see the U.S. Bank Visa Gift Card Cardholder Agreement. 13California Civil Code Section 1749.5(d)(1). Where can I get a copy of the gift certificate law? Before you buy, know the return and exchange policy. 20California Civil Code Section 1749.5(c). Use your Mastercard Gift Card and Mastercard Virtual Gift Card everywhere Debit Mastercard is accepted in the US. North Carolina law also includes additional restrictions on gift certificates not covered here. 1488 (February 11, 1997) Gift Certificates; see also California Civil Code Section 1749.5(b)(1), regarding gift certificates sold after January 1, 1997. Single-store cards can charge a dormancy fee in several instances. In Illinois, the combined effect is basically that gift cards and certificates should never expire. The court decisions are not necessarily inconsistent. The Act requires that any prepaid goods or services with a value of over $50 must have a written contract. The gift certificate law is California Civil Code Sections 1749.45-1749.6. First published on April 22, 2015 / 6:41 PM. In addition, many "multiple seller" cards are issued by banks, usable similar to pre-paid debit cards. The cell phone and 200 minutes of prepaid airtime are sold for a single price of $139.99 (bundled transaction), and the customer is required to purchase the minutes with the cell phone as part of a package deal. 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. will expire . If more than one service supplier utilizes the same access line in furnishing telephone communication services to the service user, only the service supplier that bills the service user shall collect the 911 and 988 surcharges from the user and remit them to CDTFA. 2015 CBS Broadcasting Inc. All Rights Reserved. 22California Civil Code section 1749.5(b). Q.2. The CARD Act provides a compelling case study into the need for every small business owner to hire a good business law attorney. Does an unredeemed gift certificate escheat to the state? Their pro rata share of the CDTFA's collection and administrative costs, deducted from the CDTFA's quarterly transmittals to the local jurisdiction. Entrepreneurs should consult with a business attorney before proceeding down this path. (877) 328-9677, or contact your county social services agency. (sel. This may include changing an address, opening or closing a business location, or obtaining a copy of their seller's permit or license. The invoice, receipt, or other similar document must show the amount of the 911 surcharge ($0.30), the amount of the 988 surcharge ($0.08), and the amount of local charges ($6.88) at the time of the retail sale of prepaid MTS. Prepaid cell phones have widespread use in the United States. Account Sign InIniciar sesin. However, you can restore your expired balance if you refill within 7 days after your anniversary date, as we understand life can get busy. 18California Civil Code Section 1749.5(b)(1). If you sell SIM cards loaded with prepaid wireless airtime/minutes for a single price, the 911 and 988 surcharges apply. As with food gift cards, however, the expiration date must be printed on the front of the card in 10-point type. 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? Ask the seller about its policies on returning merchandise. 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). namiko love browner . Funds on the cards don't expire, though. 3. Dispute the location of the retail transaction, Believe the transaction is exempt from the local charges, or. A. In general, a kiosk owner that sells prepaid top-up airtime/minutes is required to register as a prepaid MTS seller and is responsible for collecting and paying the 911 surcharge, 988 surcharge, and any applicable local charges to CDTFA. 24California Legislative Counsel, Opinion No. A. 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. The 911 and 988 surcharges do not apply to a telephone company's own access lines when the telephone company is not subject to charges for access lines that are billed by a service supplier. If balance is insufficient to renew all lines on your account for 120 days, all lines will . 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. You may also want to purchase a gift card for yourself from a business that you patronize regularly. Never give out your personal information to anyone, or you could have your benefits stolen. It is the opinion of this office that, where the laws are inconsistent, the law that is most protective of consumers should be followed. Can a gift certificate or gift card contain a service fee? 911 Surcharge, 988 Surcharge, and Local Charge Rates, Electronic Funds Transfer (EFT) - Frequently Asked Questions (FAQ's), Filing Claims for Refund - Special Taxes and Fees, Local Prepaid Mobile Telephony Services Collection Act (42100-42111), subdivision (e) of Revenue and Taxation code (RTC) section 42020, Pay-As-You-Go cell phone with minutes/airtime, Prepaid telephone calling cards vs. prepaid wireless calling cards, SIM cards sold with prepaid wireless airtime/minutes, Prepaid products and services sold for use outside of California, Kiosks selling prepaid top-up airtime/minutes, Consumers that want to file a claim for refund for local charges, Telecommunication Service Suppliers (Service Suppliers), Medical alert devices and inmate call systems, Multiple Service Suppliers Furnishing Services Using the Same Access Line, Local Prepaid Mobile Telephony Services Collection Act Law, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2023, New 988 Surcharge and Rates for the 911 and 988 Surcharges Effective January 1, 2023, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2022, Emergency Telephone Users (911) Surcharge 2022 Rate and Mandatory Online Filing for Service Suppliers, Collection of Local Charges Extended through December 31, 2025, New Local Charge Rate for San Francisco Retail Sales of Prepaid Mobile Telephony Services (MTS) Effective April 1, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2020 through December 31, 2020, Collection of 911 Surcharge Required by Sellers Beginning January 1, 2020; Collection of Local Charges by Sellers Extended through December 31, 2020, Emergency Telephone Users (911) Surcharge Rate Effective January 1, 2021 through December 31, 2021, The Emergency Telephone Users Surcharge Return Will Move to Our New Online Services System Effective November 9, 2020, Important Notice Regarding Your Emergency Telephone Users Surcharge Return, Changes to the Emergency Telephone Users (911) Surcharge Effective January 1, 2020, Information for Local Jurisdictions and Districts, Total due on sale (Price of Phone + Airtime + 911 Surcharge + 988 Surcharge + Local Charges + Sales Tax), Prepaid phone (see computation below for amount of sales tax included), 1000 minutes of airtime (911 Surcharge and local charges included), Local charges included in selling price (see computation below), Total due on sale* (price of phone + price of airtime), Total due on sale (single price of phone and airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), Prepaid phone + 10 minutes of airtime (or $5 in airtime), Total due on sale (price of phone + airtime + sales tax), Prepaid smartphone and 60 minutes of airtime, Total due on sale (prepaid smartphone and 60 minutes of airtime + 911 Surcharge + 988 Surcharge + local charges + sales tax), SIM card + one month unlimited talk & text, Total due on sale (SIM card + one month unlimited talk & text + 911 Surcharge + 988 Surcharge + local charges), Selling price of prepaid wireless airtime card. A Guide to Creating Custom Easter Baskets. Below is a more detailed breakdown of the average cost of prepaid funerals depending on how you want to be remembered: Can prepaid services expire in California? It requires a seller in bankruptcy to honor gift certificates issued before the date of the bankruptcy filing.25 No court has ruled on the effectiveness of this law. However, the holder of the certificate or card may have a claim against the bankruptcy estate. Password. In addition, ask about the locations where the unspent portion of the value can be redeemed, and the manner in which that amount can be redeemed. . The company says the Joey VIP pass is a promotional pass, not a gift card. The sales are made at your California store. Consumer protections vary depending on both the type of business from which the card was purchased and on the type of merchandise or service for which the card is used. 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. Airtime minutes will be deducted plus the cost of the International call. A. Since most of the answers also have exceptions, be sure to read the entire answer. Each access line for each month or partial month for which a service user subscribes with a service supplier. The California Civil Code is available at county law libraries and law school libraries. . For example, if the rate in the ordinance per month per access line is: Defending claims regarding the validity of their ordinance. Therefore, because your customer provided a mobile phone number that is associated with a California location, the online sale is subject to the 911 surcharge, 988 surcharge, and local charges (if applicable). The 911 surcharge, 988 surcharge, and local charge rates may be viewed on our webpage (see 911 Surcharge, 988 Surcharge, and Local Charge Rates for Sellers of Prepaid Mobile Telephony Services (MTS)). Sales of prepaid data service plans (minutes) that can be used for data, text, or as cell phone airtime minutes are subject to the 911 surcharge, 988 surcharge, and local charges apply (if applicable). Federal banking regulators recently have ordered that national banks provide better disclosure of these fees, including placing expiration dates on the front of cards; disclosing any monthly maintenance or inactivity fees; and providing a phone number or website for detailed information. Benefits of a prepaid cell phone. Calls are billed in one-minute increments. The customer's billing information shows they live in Sacramento, CA. 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. Bank gift cards are both flexible and convenient as they usually tap into a leading credit card network and can be used at many stores. An amended return(s) stating the specific reason(s) for the overpayment. Yes. For information on filing a claim, and other basic information on bankruptcy, see "Consumer Tips on Retail Store Bankruptcies," under the "Publications" tab at www.dca.ca.gov, and then go to the "Consumer Publications" section, for the list of consumer publications. Last year, SoulCycle paid out as much as $9.2 million in a class-action lawsuit due to the expiration date. 7. For instance, the card issuer cannot charge a dormancy or inactivity fee on a gift card unless there has been no activity for one year and the card clearly states its policy toward that fee. The fee can vary. Service may be suspended/terminated if used in violation of Acceptable Use Policy. 15California Civil Code Section 1749.5(d)(3); 83 Ops. The 911 and 988 surcharges apply to the transaction.

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