The Digital Collegian - Published independently by students at Penn State
NEWS
[ Thursday, Dec. 6, 2001 ]

Gift certificates can be used after they expire

Collegian Staff Writer

As the holiday season rolls around, some penny-pinching shoppers will be digging up old gift certificates to make their purchases.

These people might be happy to learn that not only are expired gift certificates redeemable at most stores in State College, but that money from gift certificates never redeemed might be able to be returned to the customer, under the State of Pennsylvania's unclaimed property law.

The law states stores must turn over the money from unused gift certificates to the Pennsylvania Treasury Department if no one redeems the gift certificate within two years after the expiration date -- or seven years after the certificate's date of insurance if there is no expiration date. The Treasury department will, in turn, look for the consumers and return the money to them.

"Businesses are learning more about their obligations to return (money spent on gift certificates)," said Steve Schell, press secretary to Barbara Hafer, Pennsylvania State Treasurer. "We are encouraging businesses to record the name and address of the person (who receives the certificate as a gift) or the buyer."

Schell said the law is often not known by consumers and small businesses. Most of the stores and restaurants in downtown State College are not aware of any obligation to turn the money into the State Treasury, though most are more than willing to honor an expired gift certificate.

"We usually give a lot of leeway when it comes to (the expiration date on) gift certificates," said Nicole Houze, a manager at Metro, 324 E. College Ave. "There has never been an instance in which we said absolutely not."

Lew Kamin, financial officer of Dante's Restaurants Inc., which runs The Deli Restaurant, 113 Hiester St.; Mario and Luigi's Italian Restaurant, 114 S. Garner St.; Mio Zio, 132 W. College Ave.; and Hi-Way Pizza, 340 E. College Ave., 428 Westerly Parkway Plaza and Village Square on North Atherton Street, said it is the responsibility of the restaurant to provide the consumer with goods and services equal to the amount of money spent. If that means replacing an expired gift certificate, they will do that. He added that it is rare for a person to not redeem a gift certificate.

"In 99.9 percent of the cases, the gift certificates are claimed," he said.

Other downtown stores, such as Rapid Transit Sports, 115 S. Allen St.; Old State Clothing Company, 310 E. College Ave. and the Corner Room, 100 W. College Ave., allow gift certificates to be used indefinitely, with no expiration date.

Appalachian Ski and Outdoors, 123 S. Allen St., issue gift certificates in the form of an account from which customers can withdraw the money given to them in the certificate, said manager George Schettler. However, the account is taken off the store's records after a year, so customers are encouraged to use up the account before that.

Similarly, some national chain stores, such as The Gap, 206 W. College Ave., and American Eagle Outfitters, Express Women's Apparel Retail, both at 2,900 E. College Ave., are now making gift certificates available in the form of cards which work similarly to a debit card. These cards have no expiration date.

Schell added that gift certificates issued by a business that did not record the name of the buyer or the name of the receiver can be tracked.

"Most gift certificates have a serial number on them, so we can track it," he said.

"If it can't be returned to anyone, the money becomes part of the state's general fund."

 



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