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Gift Card Issuers Beware: CFPB Finds Limited Preemption of Unclaimed Property Laws

May 1, 2013

Authors

Bryan Cave

Gift Card Issuers Beware: CFPB Finds Limited Preemption of Unclaimed Property Laws

May 1, 2013

by: Bryan Cave

CFPB Finds Limited Preemption; Gift Card Issuers Must Honor Cards Even After Funds Have Escheated to the State

The Consumer Financial Protection Bureau (“CFPB”) recently published a final determination regarding whether the unclaimed property laws of Maine and Tennessee relating to unredeemed gift cards (“Applicable State Law”) are inconsistent with and preempted by the gift card provisions of the  Electronic Fund Transfer Act and Regulation E (“Federal Law”).  The applicable laws of Maine and Tennessee are quite similar for the issues at hand.  In its ruling, the CFPB determined that Maine’s unclaimed property law as

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Third Circuit Issues Opinion in New Jersey Abandoned Property Litigation

February 3, 2012

Authors

Bryan Cave

Third Circuit Issues Opinion in New Jersey Abandoned Property Litigation

February 3, 2012

by: Bryan Cave

The Third Circuit issued a long-awaited decision in the New Jersey Abandoned Property litigation, NJ Retail Merchants Association v. Andrew Sidamon-Eristoff. The court affirmed the District Court’s decision in this important escheat case with broad implications for members of the prepaid industry.

BACKGROUND

In 2010 New Jersey passed a new abandoned property law that, if upheld, would have been devastating for gift card and prepaid card issuers doing business in New Jersey.

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