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: 15USC1666h]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
              SUBCHAPTER I--CONSUMER CREDIT COST DISCLOSURE
 
                         Part D--Credit Billing
 
Sec. 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
        

(a) Offset against consumer's funds

    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.

In the case of any credit card account in existence on the effective 
date of this section, the previous written authorization referred to in 
clause (1) shall not be required until the date (after such effective 
date) when such account is renewed, but in no case later than one year 
after such effective date. Such written authorization shall be deemed to 
exist if the card issuer has previously notified the cardholder that the 
use of his credit card account will subject any funds which the card 
issuer holds in deposit accounts of such cardholder to offset against 
any amounts due and payable on his credit card account which have not 
been paid in accordance with the terms of the agreement between the card 
issuer and the cardholder.

(b) Attachments and levies

    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.

(Pub. L. 90-321, title I, Sec. 169, as added Pub. L. 93-495, title III, 
Sec. 306, Oct. 28, 1974, 88 Stat. 1515.)

                       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.