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Title 15, Commerce and TradeRelease 119-102

§1666d Treatment of Credit Balances

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

Last updated Aug 21, 2026|Official source

Summary

When a customer’s account shows more than $1 in credit—because of an overpayment, refunds of finance or insurance charges, or other amounts owed—the creditor must add that credit to the customer’s account and must refund any part of it if the customer asks. If the credit stays in the account for more than six months, the creditor must try in good faith to send cash, a check, or a money order, unless the customer’s current location cannot be found from the last known address or phone.

Full Legal Text

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.

Legislative History

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.

Reference

Citations & Metadata

Citation

15 U.S.C. § 1666d

Title 15, Commerce and Trade

Last Updated

Aug 21, 2026

Release point: 119-102