Lawmaker hopes non-expiry gift checks law passed soon

A House leader is hopeful that the measure seeking to ban the issuance of gift checks with expiry dates will be enacted into law before Christmas.

Leyte Repsentative Henry Ong, vice chairman of the House Committee on Banks & Financial Intermediaries, pushed for the passage of House Bill (HB) 6016, which seeks to regulate the issuance, use and redemption of gift checks, gift certificates and gift cards.

HB 6016 or the proposed Gift Check Non-Expiry Act that seeks to prohibit the issuance and sale of gift checks, gift certificates, or gift cards that have expiry dates has a counterpart measure in the Senate – the Senate Bill 1466.

“It is our hope these bills will move swiftly through Congress in the weeks ahead and will become law by October or November this year. The sooner, the better,” Ong said.

He called on the Department of Trade and Industry (DTI) to advise issuers of gift checks to start reducing the number of gift checks they are issuing in order to lessen the number of gift checks with expiry dates that are in circulation.

“Most likely, the IRR (implementing rules and regulations) will state that gift checks issued before the effectivity of the law or of the IRR will not be covered by the prohibitions. In my view, the reference date should be the date of the effectivity of the law, not the IRR, because the date of the effectivity of the law as the reference point would be to the advantage of the consumer,” Ong added.

The bill, however, provides an exception – gift checks, gift certificates, or gift cards issued as part of an award, loyalty, or promotional program.

Under HB 6016, the imposition of an expiry date on the stored value, credit, or balance of the gift check is prohibited. It provides that the gift cards shall remain valid until the cessation of the business of the issuer.

Senior citizen and persons with disability (PWD) discounts shall apply when gift checks are used, the bill said.