Wednesday, November 24, 2010
Breakage targeted by N.J.
A battle has begun over unclaimed property in New Jersey, with the unused balances on prepaid cards front and center in the controversy. A state assembly bill signed into law in June 2010 targeted for state coffers the breakage on gift cards and other financial instruments. But a federal judge temporarily blocked implementation of the law on the grounds that it may be unconstitutional.
The law, if implemented, would have reportedly netted the state government $80 million in unused gift card, calling card and money order funds. On Nov. 22, 2010, the New Jersey Assembly passed a bill that "exempts gift cards or gift certificates usable solely for telephone services from the escheatment processes imposed by the budget signed into law," said a post on the New Jersey Assembly Democrats' Facebook page.
The "phone card" carve-out would ensure that the law doesn't adversely affect consumers who rely on prepaid phone cards, such as soldiers, said Paul D. Moriarty, D-Gloucester/Camden, Chairman of the Assembly Consumer Affairs Committee.
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