US Laws, Codes, Statutes & Cases

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[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC1666d]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                         Part D--Credit Billing
 
Sec. 1666d. Treatment of credit balances

    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.

(Pub. L. 90-321, title I, Sec. 165, as added Pub. L. 93-495, title III, 
Sec. 306, Oct. 28, 1974, 88 Stat. 1514; amended Pub. L. 96-221, title 
VI, Sec. 621(a), Mar. 31, 1980, 94 Stat. 184.)


                               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.


                    Effective Date of 1980 Amendment

    Amendment 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.