Consumer Banking and Payments Law: 7.7.6 When the Card Does Not Function Properly
Consumers may be sold defective cards that do not operate at all or are not able to access the amount of value for which the consumer paid. In that situation, the issuer should be liable for breach of an express or implied warranty based either directly on UCC Article 2 or by analogy.1098 But Regulation E error resolution procedures do not apply because gift cards are not generally within the scope of the EFTA’s general provisions. It even may be difficult or impossible for the consumer to ascertain to whom a complaint should be made.