US Laws, Codes, Statutes & Cases

From the U.S. Code Online via GPO Access
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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: 15USC1666f]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                         Part D--Credit Billing
 
Sec. 1666f. Inducements to cardholders by sellers of cash 
        discounts for payments by cash, check or similar means; finance 
        charge for sales transactions involving cash discounts
        

(a) Cash discounts

    With respect to credit card which may be used for extensions of 
credit in sales transactions in which the seller is a person other than 
the card issuer, the card issuer may not, by contract, or otherwise, 
prohibit any such seller from offering a discount to a cardholder to 
induce the cardholder to pay by cash, check, or similar means rather 
than use a credit card.

(b) Finance charge

    With respect to any sales transaction, any discount from the regular 
price offered by the seller for the purpose of inducing payment by cash, 
checks, or other means not involving the use of an open-end credit plan 
or a credit card shall not constitute a finance charge as determined 
under section 1605 of this title if such discount is offered to all 
prospective buyers and its availability is disclosed clearly and 
conspicuously.

(Pub. L. 90-321, title I, Sec. 167, as added Pub. L. 93-495, title III, 
Sec. 306, Oct. 28, 1974, 88 Stat. 1515; amended Pub. L. 94-222, 
Sec. 3(c)(1), Feb. 27, 1976, 90 Stat. 197; Pub. L. 97-25, title I, 
Sec. 101, July 27, 1981, 95 Stat. 144.)


                               Amendments

    1981--Subsec. (b). Pub. L. 97-25 substituted ``With respect to any 
sales transaction, any discount from the regular price offered by the 
seller for the purpose of inducing payment by cash, checks, or other 
means not involving the use of an open-end credit plan or a credit card 
shall not constitute a finance charge as determined under section 1605 
of this title if such discount is offered to all prospective buyers and 
its availability is disclosed clearly and conspicuously'' for ``With 
respect to any sales transaction, any discount not in excess of 5 per 
centum offered by the seller for the purpose of inducing payment by 
cash, check, or other means not involving the use of a credit card shall 
not constitute a finance charge as determined under section 1605 of this 
title, if such discount is offered to all prospective buyers and its 
availability is disclosed to all prospective buyers clearly and 
conspicuously in accordance with regulations of the Board''.
    1976--Subsec. (a). Pub. L. 94-222 temporarily designated existing 
provisions as par. (1) and added par. (2). See Termination Date of 1976 
Amendment note below.


                   Termination Date of 1976 Amendment

    Section 3(c)(2) of Pub. L. 94-222, as amended by Pub. L. 95-630, 
title XV, Sec. 1501, Nov. 10, 1978, 92 Stat. 3713; Pub. L. 97-25, title 
II, Sec. 201, July 27, 1981, 95 Stat. 44, provided that: ``The 
amendments made by paragraph (1) [amending this section] shall cease to 
be effective on February 27, 1984.''


  Nullification of Board Rules and Regulations Under Subsection (b) of 
                 This Section in Effect on July 26, 1981

    Section 103 of Pub. L. 97-25 provided that: ``Any rule or regulation 
of the Board of Governors of the Federal Reserve System pursuant to 
section 167(b) of the Truth in Lending Act [subsec. (b) of this 
section], as such section was in effect on the day before the date of 
enactment of this Act [July 27, 1981], is null and void.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1602, 1607, 1666j of this 
title.