ELM 6.4 Exceptions to the duty to redeem
Minimum redemption amount
ELM 6.3.1 R does not apply if:
- (1)
the e-money to be redeemed has a par value of less than:
- (a)
(if the e-money is denominated in euro) 10 euro; or
- (b)
(if it is denominated in another currency) the equivalent of 10 euro in that currency; and
- (a)
- (2)
this exception is expressly provided for by the e-money scheme rules.
Expiration of e-money
If the e-money scheme rules provide that e-money ceases to be valid after a specified period, the redemption right does not apply after the end of that period.
Guidance
The duty to redeem assumes that the person asking for redemption is able to present or make available the e-money for redemption. Thus, for example, if the e-money scheme in question is card based, and the person in question loses his card, ELM 6.3.1 R does not require the firm to reimburse the holder or redeem that e-money for him.
A firm should consider whether it is under any duty to compensate a holder of e-money issued by it who loses his consumer e-money card or whose e-money is used fraudulently by another. For example, a firm should consider whether the duty of a card issuer under regulation 21 (Payment by card) of the Consumer Protection (Distance Selling) Regulations 2000 to recredit or to return sums in the event of fraudulent use of a payment card applies to it, particularly in the case of e-money stored on a plastic card.