GIFT CARDS

Oklahoma law does not allow the sale of gift cards with an expiration date of less than 60 months and gift cards without an expiration date are valid until they are redeemed.

Oklahoma law also requires any service fees to be clearly printed on the card including any dormancy fee. A dormancy fee cannot be assessed unless the gift card has had no activity for 24 months.

CREDIT CARDS

Avoid Seasonal Solicitations-- Beware of those attractive low introductory rates you receive before the holidays.  The fine print in credit card contracts is filled with traps to catch the unwary.  An introductory 0% interest rate can quickly leap to over 20% with just one slightly late payment. Once you have that high interest rate you will find large monthly payments that are only paying off the interest on the account and the balance seems to never go away.  If you are going to use a credit card, shop around for one with a long-term low interest rate (APR), and read all of the fine print.

Don't Let Your Guard Down- Once you choose a card, your credit card company can still change the rules if it wants to.  Read your mail - a nondescript mailing may include a change in terms relating to your interest rates, fees or due dates.  Using the card after you receive these new terms is considered to be acceptance of the new terms. The company can even change your interest rate on debt you've already accumulated and increase your annual fees, late fees or other terms of the contract.

Rent-to-Own = Concealed Costs

Deceptive Deals- Rent-to-own contracts for appliance and other major purchases are deceptive and costly. You could pay two and one-half times more for a product by renting it than you would if you simply bought it at a retail store.  In fact, the rent-to own outlets don't even tell you how much of your monthly payment is interest - so beware.

Don't Miss a Payment - If you do miss a payment to the rent-to-own store, the item is likely to be  repossessed, leaving you with nothing for the payments you have made up to that point.

The Comeback of Layaway Plans

 Paying Patiently- Layaway plans are a good way to give your credit card a rest.  The good news is that stores usually do not charge interest or large fees for this service.

Know the Details - Before making a purchase on the layaway plan, find out what the layaway fees are and what happens if you miss or are late with a payment.  Do you lose all of your past payments if you miss one?  Is there a cancellation fee if you change your mind? 

Debit Cards - The Pros and Cons

It's Your Money- With a debit card, you are spending money in your own bank account, unlike a credit card where you are borrowing money that you have to pay back later, along with interest and fees.

There's Less Protection - You have much less protection if a debit card is lost or stolen.  Also, with a credit card, you have protections if you get in a dispute with a merchant.

Abusive Overdraft Fees - If you use a debit card to make purchases, make sure you don't spend more than you have in your account.  Your purchases may be approved, but the bank can hit you with an overdraft fee of as much as $39 for EACH over-limit purchase, no matter how small.

For more information on holiday shopping and protecting your credit and finances visit the Tulsa, Oklahoma Consumer Protection Law Firm Humphreys Wallace Humphreys P.C. at http://www.hwh-law.com. and Americans for Fairness in Lending at http://www.affil.org .