Mall owner settles gift card claims

Hartford (WTNH) - Connecticut's attorney general says the owner of the Crystal Mall in Waterford has agreed to pay nearly $309,000 to settle alleged violations of the state's gift card laws.

This is how the card worked: If you don't use it after six months you get charged an adminstrative fee of $2.50 a month. So if you have a gift card worth $20 - in a year, if you don't use it - it would only be worth $5.

But that goes against the state's ban on gift card inactivity fees.

Attorney General Richard Blumenthal announced today an agreement which settles a lawsuit he filed against Simon property which owns the Crystal Mall in Waterford.

The settlement includes more than $250,000 in refunds to folks who were subject to these inactivity fees from August 2003 to January 2005.

"That refund is a victory. But, we must continue to fight for gift card holders who've been charged expiration fees and possibly denied the benefit of their gift card through expiration dates by assuring that stores and mall owners are stopped from using national banks as a way to circumvent our laws," Blumenthal said.

One way the mall owner continues to circumvent Connecticut law is that cards now are issued through national banks which only have to follow federal laws, which does allow these fees.

If you think you might be due a refund from this settlement contact the attorney general's office.