Title 15 — Commerce and TradeRelease 119-73not60
§1666d Treatment of Credit Balances
Title 15 › Chapter 41— CONSUMER CREDIT PROTECTION › Subchapter I— CONSUMER CREDIT COST DISCLOSURE › Part D— Credit Billing › § 1666d
Summary
Creditors must handle credit balances over $1 that come from extra payments, rebates of unearned charges, or other amounts owed: they must apply it to the consumer’s account, refund any part if asked, and if the balance stays more than six months must try sending cash, check, or money order unless the consumer can't be located by the last 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
Apr 3, 2026
Release point: 119-73not60