15 U.S.C. § 1666c

Prompt and fair crediting of payments

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(a) In general

Payments received from an obligor under an open end consumer credit plan by the creditor shall be posted promptly to the obligor’s account as specified in regulations of the Bureau. Such regulations shall prevent a finance charge from being imposed on any obligor if the creditor has received the obligor’s payment in readily identifiable form, by 5:00 p.m. on the date on which such payment is due, in the amount, manner, and location indicated by the creditor to avoid the imposition thereof.

(b) Application of payments(1) In general

Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted.

(2) Clarification relating to certain deferred interest arrangements

A creditor shall allocate the entire amount paid by the consumer in excess of the minimum payment amount to a balance on which interest is deferred during the last 2 billing cycles immediately preceding the expiration of the period during which interest is deferred.

If a card issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments, and such change causes a material delay in the crediting of a cardholder payment made during the 60-day period following the date on which such change took effect, the card issuer may not impose any late fee or finance charge for a late payment on the credit card account to which such payment was credited.

(Pub. L. 90–321, title I, § 164, as added Pub. L. 93–495, title III, § 306, Oct. 28, 1974, 88 Stat. 1514; amended Pub. L. 111–24, title I, § 104, May 22, 2009, 123 Stat. 1741; Pub. L. 111–203, title X, §§ 1087, 1100A(2), July 21, 2010, 124 Stat. 2086, 2107.)Editorial NotesCodification

Pub L. 111–203, § 1100A(2), which directed the substitution of “Bureau” for “Board” wherever appearing in title I of Pub. L. 90–321, was executed to this section, which is section 164 of title I of Pub. L. 90–321. Section 1087 of Pub. L. 111–203, which directed the making of an identical amendment in title III of Pub. L. 93–495, which added this section to title I of Pub. L. 90–321, has not been executed.

Amendments

2010—Subsec. (a). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board”. See Codification note above.

2009—Pub. L. 111–24, § 104(1), substituted “Prompt and fair crediting of payments” for “Prompt crediting of payments” in section catchline, designated existing provisions as subsec. (a), and inserted subsec. (a) heading.

Subsec. (a). Pub. L. 111–24, § 104(2), (3), inserted “, by 5:00 p.m. on the date on which such payment is due,” after “in readily identifiable form” and substituted “manner, and location” for “manner, location, and time”.

Subsecs. (b), (c). Pub. L. 111–24, § 104(4), added subsecs. (b) and (c).

Statutory Notes and Related SubsidiariesEffective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

Effective Date of 2009 Amendment

Amendment by Pub. L. 111–24 effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as a note under section 1602 of this title.

Notes of Decisions

Cited in 7 cases (1 in the last 5 years), 1993–2024 · leading case: Taylor v. First North Am. Nat'l Bank, 325 F. Supp. 2d 1304 (M.D. Ala. 2004).

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Taylor v. First North Am. Nat'l Bank, 325 F. Supp. 2d 1304 (M.D. Ala. 2004). “Taylor alleges that the bank violated the FCBA, 15 U.S.C.A. § 1666c, and the regulations promulgated to enforce the act, by not posting payments received after 10:00 a.”

U.S. Bank Nat'l Ass'n ND v. Strand, 243 F. Supp. 2d 1139 (D. Or. 2002). · cites it 2× “The complaint in the Strand class action alleges claims for violation of the Fair Credit Billing Act, 15 USC § 1666c, and for breach of contract arising from improper excess finance charges and late fees as a result of U.”

Lawrence v. Household Bank (SB), N.A., 343 F. Supp. 2d 1101 (M.D. Ala. 2004). “Plaintiffs claim that defendants are violating the FCBA, 15 U.S.C.A. § 1666c, and the regulations promulgated to enforce the statute, 12 C.”

Battels v. Sears Nat'l Bank, 365 F. Supp. 2d 1205 (M.D. Ala. 2005). “Plaintiffs claim that Defendant is violating the FCBA, 15 U.S.C.A. § 1666c, and the regulations promulgated to enforce the- statute, 12 C.”

George K. Price, Harry L. Schuman & Sharon Rosen, Plaintiffs-Appellants-Cross-Appellees v. FCC Nat'l Bank, Defendant-Appellee-Cross-Appellant, 4 F.3d 472 (7th Cir. 1993). “First, 15 U.S.C. § 1666c forbids a creditor from imposing a finance charge if payment was properly and timely made but not credited to the cardholders account.”

Brown v. Credit One Bank (D.N.J. 2024). “1 at 2 (citing 15 U.S.C. § 1666c).] written on the statement, as well as writing out the $17.”

Lawrence v. Household Bank (SB), N.A., 343 F. Supp. 2d 1094 (M.D. Ala. 2004). “In their lawsuit originally filed on February 10, 2003, in an Alabama state court, they allege that defendants are violating the federal Fair Credit Billing *1097 Act, 15 U.S.C.A. § 1666c, and the regulations promulgated to enforce the act, 12 C.”

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