Instances Where Issuers and Accredited Merchants May refuse to Honor Gift Checks.
Section 7
SEC. 7. Instances Where Issuers and Accredited Merchants May refuse to Honor Gift Checks.- The issuer and its accredited merchants may refuse to honor gift checks under the following circumstances: (a) When the gift check is lost due to no fault of the issuer; or (b) When the gift check is mutilated or defaced due to no fault of the issuer and such damage prevents the issuer from identifying the security and authenticity features thereof. This Act shall not prevent any issuer from prescribing reasonable rules for changing, upgrading, or updating the gift check: Provided, That such rules shall be subject to the approval of the DTI: Provided, further, That it does not impose additional cost to the consumer: Provided, finally, That it does not violate the provisions of this Act.