Title 15 — Commerce and TradeRelease 119-73not60
§1666h Offset of Cardholder’s Indebtedness by Issuer of Credit Card with Funds Deposited with Issuer by Cardholder; Remedies of Creditors Under State Law Not Affected
Title 15 › Chapter 41— CONSUMER CREDIT PROTECTION › Subchapter I— CONSUMER CREDIT COST DISCLOSURE › Part D— Credit Billing › § 1666h
Summary
A credit card company cannot take money you have on deposit with them to pay your card debt unless you signed a written plan letting them regularly deduct payments from that deposit. If you say a charge is disputed, they must not take that disputed amount, and state law can still allow other creditor actions (like attaching deposits) when those actions are generally permitted.
Full Legal Text
Title 15, §1666h
Commerce and Trade — Source: USLM XML via OLRC
(a)A card issuer may not take any action to offset a cardholder’s indebtedness arising in connection with a consumer credit transaction under the relevant credit card plan against funds of the cardholder held on deposit with the card issuer unless—
(1)such action was previously authorized in writing by the cardholder in accordance with a credit plan whereby the cardholder agrees periodically to pay debts incurred in his open end credit account by permitting the card issuer periodically to deduct all or a portion of such debt from the cardholder’s deposit account, and
(2)such action with respect to any outstanding disputed amount not be taken by the card issuer upon request of the cardholder.
(b)This section does not alter or affect the right under State law of a card issuer to attach or otherwise levy upon funds of a cardholder held on deposit with the card issuer if that remedy is constitutionally available to creditors generally.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
For
Effective Date
of this section, referred to in subsec. (a), see
Effective Date
note set out under section 1666 of this title.
Reference
Citations & Metadata
Citation
15 U.S.C. § 1666h
Title 15 — Commerce and Trade
Last Updated
Apr 3, 2026
Release point: 119-73not60