New York comptroller reports more than $28 million in unused gift cards turned over as unclaimed funds

Unused gift cards in New York State

New York residents are currently leaving a massive amount of holiday cash in the government’s hands. On January 12, 2026, the New York State Comptroller announced that many people had forgotten to spend their plastic gift cards.

In 2025, businesses across the state turned over more than $28 million in unused gift card balances to the Office of Unclaimed Funds. This money is being held in a state account until the rightful owners come forward to claim it.

Total unclaimed funds reach new heights

This specific collection of gift card money contributes to a much larger pool of lost assets managed by the state. As of January 2026, the State of New York is holding approximately $20 billion in total unclaimed funds.

This record-breaking amount includes money from old bank accounts, uncashed checks, and utility deposits that were never collected. The state acts as a permanent guardian for these assets.

Unlike the gift cards themselves, which may have rules, these funds never expire once they are sent to the government.

Daily returns to New York residents

Efforts to return these massive sums to the public happen every single day through organized state programs. In 2025, the Office of Unclaimed Funds successfully returned more than $580 million to rightful owners across the state.

This high volume of returns means that every business day, the state sends out an average of $2 million in checks to residents. Even though billions remain unclaimed, hundreds of millions of dollars are reunited with New Yorkers.

New rules for faster money claims

Returning such large sums of money became significantly easier due to recent legislative changes. In 2025, a new law allowed the Comptroller to return small amounts of money to residents without completing complicated paperwork.

For specific new claims of $250 or less, the state can now send a check directly to the owner if it can confirm the address. This update was designed to help clear out smaller gift card balances that people often find too challenging to claim.

Major legal settlements over gift cards

Before these new rules were in place, the state used legal action to ensure companies were not hiding unspent funds. On December 20, 2024, the New York Attorney General announced a settlement with a company called Card Compliant LLC.

This company was forced to pay $4.37 million for helping a clothing store avoid turning over unused gift card funds. In a separate case, the retailer H&M had to pay $36 million in 2022 for similar issues where unspent gift cards were not reported.

Growth in recovered gift card money

These legal battles and stricter reporting rules have caused the total amount of recovered gift card cash to skyrocket. In 2024, the state recovered over $21 million from unspent gift cards turned over by retailers.

When compared with the $6.8 million collected in 2014, the total annual amount has more than tripled over the past decade.

This sharp increase shows that gift cards are more popular than ever and that the state is more successful at ensuring businesses comply with reporting laws for abandoned property.

Regional breakdown of unclaimed gift cards

This growing pool of recovered funds is distributed to residents in every central region of the state. New York City has the largest amount of unclaimed gift card cash, with residents currently owed nearly $48.6 million.

Long Island is second on the list, with local residents owing about $11.4 million in forgotten funds. People living in the Hudson Valley have also left behind a significant amount, totaling $7.9 million.

Rules for gift card expiration dates

Residents in these regions benefit from some of the strongest consumer protection laws regarding the validity of cards. For any gift card purchased after December 10, 2022, the funds on the card cannot expire for at least 9 years.

This is much longer than the federal law, which requires cards to last only 5 years from the date of purchase. Even if the physical plastic card shows an outdated date, the funds on the card remain valid under these specific New York State laws.

Avoiding inactivity and dormancy fees

Along with long expiration dates, the state also limits the fees that companies can charge for not using a card. For cards purchased after December 10, 2022, all inactivity fees are completely prohibited under New York law.

For older cards, companies were generally not allowed to charge fees for at least two years after the card was bought.

However, federal rules still allow some general-purpose cards to charge fees after 12 months of inactivity if they are clearly disclosed. Spending the card quickly is the best way to keep its full value.

Benefits of registering your gift cards

Protecting the value of your card is much easier if you take the time to link your identity to it. State officials strongly recommend that people register their gift cards online as soon as they receive them.

When you register a card, the store connects your name and address to the card number. If the money is eventually sent to the state, having your name on file makes it much easier to prove you are the owner.

This registration helps the state return funds more quickly through the automated system.

Five year deadline for gift card use

Even with registration, the law eventually requires stores to stop holding onto the money if the card remains idle. If a gift card is not used for five years, it is legally considered abandoned property.

Once that five-year clock runs out, the store cannot keep the cash. Instead, they must send the balance to the Office of Unclaimed Funds. This rule exists to protect consumers from losing their money if a store goes out of business or if the card is lost or forgotten.

How to search for your money

Once the money reaches the state, checking whether you have a claim is a simple, free process. You can go to the official website of the Office of Unclaimed Funds and enter your last name to get started.

The state’s search tool is updated daily with new records. On January 14, 2026, officials reminded the public that they should never pay anyone to find this money for them. If you find a match, you can often submit your claim online.

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State provides free claiming services

The Comptroller ensures that every citizen has direct access to their money without any hidden costs or fees. On January 18, 2026, the office warned residents to be careful of scammers who try to charge fees for returning lost money.

If you have questions, you can call the state’s hotline at 800-221-9311 during regular business hours. The state also holds in-person events throughout the year to help people find their funds.

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What is the oldest gift card you have? Let us know in the comments!

This slideshow was made with AI assistance and human editing.

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