Gift card bill gives to Iowans

Font Size:

By Gov. Chet J. Culver and Treasurer Michael L. Fitzgerald | Thursday, February 14, 2008 |

Regarding Rep. Linda Miller’s Jan. 30 Legislative Update column, “The Great Gift Card Grab of ’08,” we would like to set the record straight.

Iowa’s unclaimed property law was created to do one thing — protect consumers. The law is clear: The state does not take ownership of these funds. Instead, the state acts as custodian of the property, which can be claimed by its rightful owner at any time.

Iowa’s current law includes many types of property — including gift cards, which are relatively new to the scene. Unfortunately, many retailers are uninformed about this particular statute, and use any unclaimed cards to increase their profits. We can all agree, if this money is not claimed by Iowans, it should be returned to Iowans, or — if left unclaimed — used for the benefit of all Iowans.

This is why the State Treasurer’s Office has been working with Iowa retailers in recent years to educate and enforce this portion of the law. Miller’s point that we are changing law to “grab” more money is simply wrong.

Iowa has a great track record in returning money to the rightful owner through the Great Iowa Treasure Hunt, and we will continue to take all necessary steps for Iowans who have unclaimed gift cards. However, those that go unclaimed will be used to support important state programs like school aid, road construction and health care for children.

In addition, we have proposed new legislation to further protect Iowa gift card consumers. Expiration dates and fees are being used by some retailers to take money from unknowing Iowans. Our proposal will close these loopholes, and make sure that when a person gets a gift card for a certain amount, he or she will be able to receive the same amount worth of goods and services.

Unfortunately, Rep. Miller’s column failed to offer all of the facts and to provide important information related to “unclaimed” property in Iowa.