15 U.S.C. § 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, § 165 Pub. L. 93–495, title III, § 306Oct. 28, 197488 Stat. 1514 Pub. L. 96–221, title VI, § 621(a)Mar. 31, 198094 Stat. 184(, as added , , ; amended , , .)

Editorial Notes

Amendments

Pub. L. 96–2211980— 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 Amendment

Pub. L. 96–221Mar. 31, 1980section 625 of Pub. L. 96–221 section 1602 of this titleAmendment by effective on expiration of two years and six months after , 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 , set out as a note under .