The National Retail Federation (NRF) reports that gift cards are the most-requested holiday gift for the fourth consecutive year and it expects gift card spending will reach nearly $25 billion this year, with at least 77.3 percent of you holiday shoppers intending to buy at least one.

So chances are you received one as a gift.  And recently, new provisions of the Federal Credit CARD Act took effect and impose many new regulations on gift card issuers. These new regulations contain some powerful protections, and also a few surprises:

• First, gift cards purchased on or after August 22 must hold their value for five years. The five year period restarts for each new dollar reloaded onto the card.  Be aware: the card itself may expire, but not your money!  If your gift card expires before five years and there's still money left on it, contact the issuing company have your balance transferred to a new card. Companies are required to do this for free.

• Second, the issuing company cannot charge an “inactivity fee” on your gift card until the card has not been used for 12 months. Previously some cards charged inactivity fees of $2.50 each month until the card balance reached zero.

• Third, information concerning gift card fees, expiration date, and the company’s toll-free phone number or website must be printed on the card.

• Fourth, while the Credit CARD Act contains many strong consumer protections from unscrupulous companies, it does not apply to universal prepaid gift cards. These cards typically have a major credit card company logo (e.g. Visa or MasterCard) printed on the front and can be used at any retailer. These cards may still expire and assess fees.

• Fifth, federal and state laws don’t protect consumers who have gift cards to businesses that declare bankruptcy. In the past some consumers have lost money on their gift cards when the issuing store filed for bankruptcy protection. For example, when The Sharper Image filed bankruptcy in February of 2008, they stopped accepting gift cards from customers. While technically you can file a claim in bankruptcy court for the value of your gift card, the chances of receiving payment is slim.

So what should you do if you received a gift card? 

USE  IT!   (you didn't need me to tell you that part, right?)

Gift Cards are supposed to make buying yourself a gift easy by avoiding the hassle of having to return that frumpy sweater your aunt got you. 

But, if you don't (or forget about it, which often happens), at least know you will likely get your gift, with some effort on your part.
 

Happy Shopping!

*I edited this slightly from the original version to make it more fashion focused.