Times Staff Report

A state law that takes effect Tuesday will allow Illinois consumers to avoid hidden fees or expiration dates on gift cards.

The law voids any expiration dates for five years after cards have been issued and prohibits retailers from charging fees that diminish the gift card's value.

"In Illinois, gift cards never stop giving," State Treasurer Alexi Giannoulias said. "Even when gift cards expire, consumers can recover their money from the state."

The treasurer's office has more than $5 million in unused gift card balances for Illinois residents.

If the retailer did not record contact information, consumers can file a claim with the treasurer's office using the serial number on the expired gift card.

That's one reason why the new gift card law is a win for Illinois consumers, said state Rep. Jack Franks, D-Woodstock, who sponsored the legislation.

"Our goal was to put an end to the gift that keeps on taking," Franks said. "That money needs to stay in the pockets of consumers."

An estimated $8 billion in gift cards went unused in the U.S. this year, according to TowerGroup, a research firm in Needham, Mass.