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Title 15, Commerce and TradeRelease 119-110

§1666c Prompt and Fair Crediting of Payments

Title 15 › CHAPTER 41 — CONSUMER CREDIT PROTECTION › SUBCHAPTER I — CONSUMER CREDIT COST DISCLOSURE › Part D — Credit Billing › § 1666c

Last updated Sep 22, 2026|Official source

Summary

Creditors must post payments to a customer’s open‑end credit account quickly, following rules the Consumer Financial Protection Bureau sets. If the creditor gets a clear payment by 5:00 p.m. on the due date, in the amount and at the place the creditor asked for, the creditor cannot tack on a finance charge for that payment. When a cardholder pays more than the minimum, the extra must go to the balance with the highest interest rate first. If interest was deferred, during the last 2 billing cycles before that deferral ends, the extra must go to the deferred‑interest balance. If a creditor changes its payment address, office, or procedures and that change causes a serious delay for payments made in the 60 days after the change, the creditor may not charge late fees or finance charges for those late‑credited payments.

Full Legal Text

Title 15, §1666c

Commerce and Trade, Source: USLM XML via OLRC

(a)In general
Payments received from an obligor under an open end consumer credit plan by the creditor shall be posted promptly to the obligor’s account as specified in regulations of the Bureau. Such regulations shall prevent a finance charge from being imposed on any obligor if the creditor has received the obligor’s payment in readily identifiable form, by 5:00 p.m. on the date on which such payment is due, in the amount, manner, and location indicated by the creditor to avoid the imposition thereof.
(b)Application of payments
(1)In general
Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted.
(2)Clarification relating to certain deferred interest arrangements
A creditor shall allocate the entire amount paid by the consumer in excess of the minimum payment amount to a balance on which interest is deferred during the last 2 billing cycles immediately preceding the expiration of the period during which interest is deferred.
(c)Changes by card issuer
If a card issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments, and such change causes a material delay in the crediting of a cardholder payment made during the 60-day period following the date on which such change took effect, the card issuer may not impose any late fee or finance charge for a late payment on the credit card account to which such payment was credited.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Pub L. 111–203, § 1100A(2), which directed the substitution of “Bureau” for “Board” wherever appearing in title I of Pub. L. 90–321, was executed to this section, which is section 164 of title I of Pub. L. 90–321. section 1087 of Pub. L. 111–203, which directed the making of an identical amendment in title III of Pub. L. 93–495, which added this section to title I of Pub. L. 90–321, has not been executed.

Amendments

2010—Subsec. (a). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board”. See Codification note above. 2009—Pub. L. 111–24, § 104(1), substituted “Prompt and fair crediting of payments” for “Prompt crediting of payments” in section catchline, designated existing provisions as subsec. (a), and inserted subsec. (a) heading. Subsec. (a). Pub. L. 111–24, § 104(2), (3), inserted “, by 5:00 p.m. on the date on which such payment is due,” after “in readily identifiable form” and substituted “manner, and location” for “manner, location, and time”. Subsecs. (b), (c). Pub. L. 111–24, § 104(4), added subsecs. (b) and (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date

of 2009 AmendmentAmendment by Pub. L. 111–24 effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as a note under section 1602 of this title.

Reference

Citations & Metadata

Citation

15 U.S.C. § 1666c

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110