§1666d — Title 15 Commerce and Trade | U.S. Code

Summary

Creditors must handle any credit balance over $1 that happens when a customer overpays, gets a rebate of unearned finance charges or insurance, or is otherwise owed or has money held for them. They must apply the balance to the account, refund any part if the customer asks, and make a real effort to send cash, a check, or a money order if the balance stays more than six months, unless they cannot find the customer using the last known address or phone.

Title 15, §1666d

Commerce and Trade — Source: USLM XML via OLRC

Whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction through (1) transmittal of funds to a creditor in excess of the total balance due on an account, (2) rebates of unearned finance charges or insurance premiums, or (3) amounts otherwise owed to or held for the benefit of an obligor, the creditor shall—

(A)credit the amount of the credit balance to the consumer’s account;

(B)refund any part of the amount of the remaining credit balance, upon request of the consumer; and

(C)make a good faith effort to refund to the consumer by cash, check, or money order any part of the amount of the credit balance remaining in the account for more than six months, except that no further action is required in any case in which the consumer’s current location is not known by the creditor and cannot be traced through the consumer’s last known address or telephone number.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1980—Pub. L. 96–221 substituted provisions relating to duties of creditor whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction, for provisions relating to duties of creditor whenever an obligor transmits funds to creditor in excess of the total balance due on an open end consumer credit account.

Statutory Notes and Related Subsidiaries

Effective Date

of 1980 AmendmentAmendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all

Regulations

, forms, and clauses required to be prescribed to be promulgated at least one year prior to such

Effective Date

, and allowing any creditor to comply with any

Amendments

, in accordance with the

Regulations

, forms, and clauses prescribed by the Board prior to such

Effective Date

, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.

§1666d Treatment of credit balances

Summary

Title 15, §1666d

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Regulations

Effective Date

Amendments

Regulations

Effective Date

Citations & Metadata