Extending Effective Date of Gift Card Provisions of Credit Card Law

Floor Speech

Mr. JOHNSON of Georgia. Mr. Speaker, I rise today to support H.R. 5502, a bill to amend the implementation date of the gift card provisions of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009. I would like to thank Rep. MAFFEI for introducing this bill to correct and improve H.R. 627.

This amendment would change certain parts of Title IV of H.R. 627 passed by Congress on May 22, 2009. Due to the timing of the date of implementation of new rules and those already preparing for the holiday season, as well as the technical disclosure requirements set forth in the CARD Act, lots of gift cards already made and distributed will be in violation of the CARD Act disclosure provisions. Instead of requiring that the disclosure provisions be implemented, in August, 2010, 15 months after the bill's passing, the amendment would extend this date to January 31, 2011. A reasonable transition period is necessary for small businesses to avoid high costs by reissuing prepaid cards and destroying already-made and shelved cards.

This bill will help countless Americans, including many who live in the 4th Congressional District of Georgia, by preventing the implementation of burdensome rules which could disrupt the use of gift cards. Passing this bill will remove an unintended obstacle to the use of gift cards and will ensure that consumers have the ability to use their gift cards as they choose. I urge my colleagues to support this legislation.

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