Consumer complaint received 2024-11-25 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: NAVY FEDERAL CREDIT UNION
State: TN

Complaint narrative:
Submit Current Submit << Previous TITLE 15 / CHAPTER 41 / SUBCHAPTER I / Part D Next >> [ Print ] [ Print selection ] [ OLRC Home ] Help 15 USC CHAPTER 41, SUBCHAPTER I, Part D : Credit Billing From Title 15COMMERCE AND TRADE CHAPTER 41CONSUMER CREDIT PROTECTION SUBCHAPTER ICONSUMER CREDIT COST DISCLOSURE Part DCredit Billing 1666. Correction of billing errors ( a ) Written notice by obligor to creditor ; time for and contents of notice ; procedure upon receipt of notice by creditor If a creditor, within sixty days after having transmitted to an obligor a statement of the obligor 's account in connection with an extension of consumer credit, receives at the address disclosed under section 1637 ( b ) ( 10 ) of this title a written notice ( other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 1637 ( a ) ( 7 ) of this title ) from the obligor in which the obligor ( 1 ) sets forth or otherwise enables the creditor to identify the name and account number ( if any ) of the obligor, ( 2 ) indicates the obligor 's belief that the statement contains a billing error and the amount of such billing error, and ( 3 ) sets forth the reasons for the obligor 's belief ( to the extent applicable ) that the statement contains a billing error, the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct ( A ) not later than thirty days after the receipt of the notice, send a written acknowledgment thereof to the obligor, unless the action required in subparagraph ( B ) is taken within such thirty-day period, and ( B ) not later than two complete billing cycles of the creditor ( in no event later than ninety days ) after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under paragraph ( 2 ) either ( i ) make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditor 's explanation of any change in the amount indicated by the obligor under paragraph ( 2 ) and, if any such change is made and the obligor so requests, copies of documentary evidence of the obligor 's indebtedness ; or ( ii ) send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor 's indebtedness. In the case of a billing error where the obligor alleges that the creditor 's billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination.

After complying with the provisions of this subsection with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to such error.

( b ) Billing error For the purpose of this section, a " billing error '' consists of any of the following : ( 1 ) A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on such statement.

( 2 ) A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof.

( 3 ) A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction.

( 4 ) The creditor 's failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor.

( 5 ) A computation error or similar error of an accounting nature of the creditor on a statement.

( 6 ) Failure to transmit the statement required under section 1637 ( b ) of this title to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required.

( 7 ) Any other error described in regulations of the Bureau.

( c ) Action by creditor to collect amount or any part thereof regarded by obligor to be a billing error For the purposes of this section, " action to collect the amount, or any part thereof, indicated by an obligor under paragraph ( 2 ) '' does not include the sending of statements of account, which may include finance charges on amounts in dispute, to the obligor following written notice from the obligor as specified under subsection ( a ), if ( 1 ) the obligor 's account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph ( 2 ) of subsection ( a ), and ( 2 ) the creditor indicates the payment of such amount is not required pending the creditor 's compliance with this section.

Nothing in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error.

( d ) Restricting or closing by creditor of account regarded by obligor to contain a billing error Pursuant to regulations of the Bureau, a creditor operating an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph ( B ) ( ii ), restrict or close an account with respect to which the obligor has indicated pursuant to subsection ( a ) that he believes such account to contain a billing error solely because of the obligor 's failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligor 's account the amount indicated to be in error.

( e ) Effect of noncompliance with requirements by creditor Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph ( 2 ) of subsection ( a ) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed {$50.00}. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; amended Pub. XXXX XXXX, title VI XXXX ( g ), XXXX, XXXX. XXXX, XXXX, XXXX XXXX. XXXX, XXXX ; Pub. XXXX XXXX, title X, XXXX, XXXX ( XXXX ), XX/XX/XXXX, XXXX Stat. XXXX, XXXX. ) Submit Current Submit << Previous TITLE 15 / CHAPTER 41 / SUBCHAPTER I / Part D Next >> [ Print ] [ Print selection ] [ OLRC Home ] Help 15 USC CHAPTER 41, SUBCHAPTER I, Part D : Credit Billing From Title 15COMMERCE AND TRADE CHAPTER 41CONSUMER CREDIT PROTECTION SUBCHAPTER ICONSUMER CREDIT COST DISCLOSURE Part DCredit Billing 1666. Correction of billing errors ( a ) Written notice by obligor to creditor ; time for and contents of notice ; procedure upon receipt of notice by creditor If a creditor, within sixty days after having transmitted to an obligor a statement of the obligor 's account in connection with an extension of consumer credit, receives at the address disclosed under section 1637 ( b ) ( 10 ) of this title a written notice ( other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 1637 ( a ) ( 7 ) of this title ) from the obligor in which the obligor ( 1 ) sets forth or otherwise enables the creditor to identify the name and account number ( if any ) of the obligor, ( 2 ) indicates the obligor 's belief that the statement contains a billing error and the amount of such billing error, and ( 3 ) sets forth the reasons for the obligor 's belief ( to the extent applicable ) that the statement contains a billing error, the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct ( A ) not later than thirty days after the receipt of the notice, send a written acknowledgment thereof to the obligor, unless the action required in subparagraph ( B ) is taken within such thirty-day period, and ( B ) not later than two complete billing cycles of the creditor ( in no event later than ninety days ) after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under paragraph ( 2 ) either ( i ) make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditor 's explanation of any change in the amount indicated by the obligor under paragraph ( 2 ) and, if any such change is made and the obligor so requests, copies of documentary evidence of the obligor 's indebtedness ; or ( ii ) send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor 's indebtedness. In the case of a billing error where the obligor alleges that the creditor 's billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination.

After complying with the provisions of this subsection with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to such error.

( b ) Billing error For the purpose of this section, a " billing error '' consists of any of the following : ( 1 ) A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on such statement.

( 2 ) A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof.

( 3 ) A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction.

( 4 ) The creditor 's failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor.

( 5 ) A computation error or similar error of an accounting nature of the creditor on a statement.

( 6 ) Failure to transmit the statement required under section 1637 ( b ) of this title to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required.

( 7 ) Any other error described in regulations of the Bureau.

( c ) Action by creditor to collect amount or any part thereof regarded by obligor to be a billing error For the purposes of this section, " action to collect the amount, or any part thereof, indicated by an obligor under paragraph ( 2 ) '' does not include the sending of statements of account, which may include finance charges on amounts in dispute, to the obligor following written notice from the obligor as specified under subsection ( a ), if ( 1 ) the obligor 's account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph ( 2 ) of subsection ( a ), and ( 2 ) the creditor indicates the payment of such amount is not required pending the creditor 's compliance with this section.

Nothing in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error.

( d ) Restricting or closing by creditor of account regarded by obligor to contain a billing error Pursuant to regulations of the Bureau, a creditor operating an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph ( B ) ( ii ), restrict or close an account with respect to which the obligor has indicated pursuant to subsection ( a ) that he believes such account to contain a billing error solely because of the obligor 's failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligor 's account the amount indicated to be in error.

( e ) Effect of noncompliance with requirements by creditor Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph ( 2 ) of subsection ( a ) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed {$50.00}. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; amended Pub. XXXX XXXX, title VI XXXX ( g ), XXXX, XXXX. XXXX, XXXX, XXXX XXXX. XXXX, XXXX ; Pub. XXXX XXXX, title X, XXXX, XXXX ( XXXX ), XX/XX/XXXX, XXXX Stat. XXXX, XXXX. ) Editorial Notes Codification Pub XXXX XXXX, XXXX ( XXXX ), which directed the substitution of " Bureau '' for " Board '' wherever appearing in title I of Pub. XXXX XXXX, was executed to this section, which is section XXXX of title XXXX of XXXX. XXXX XXXX. Section 1087 of XXXX. XXXX XXXX, which directed the making of an identical amendment in title XXXX of XXXX. XXXX XXXX, which added this section to title XXXX of XXXX. XXXX XXXX, has not been executed. 

Amendments XXXX. ( b ) ( XXXX ), ( d ). Pub. XXXX XXXX, XXXX ( XXXX ), substituted " Bureau '' for " Board ''. See Codification note above. 

XXXX. ( a ). Pub. XXXX XXXX, XXXX ( g ), substituted " ( b ) ( XXXX ) '' for " ( b ) ( XXXX ) '' and " ( a ) ( XXXX ) '' for " ( a ) ( XXXX ) ''. 

XXXX. ( b ) ( XXXX ), ( XXXX ). Pub. XXXX XXXX, XXXX ( a ), added par. ( XXXX ) and redesignated former par. ( XXXX ) as ( XXXX ). 

XXXX. ( c ). Pub. XXXX XXXX, XXXX ( b ), inserted provisions respecting finance charges on amounts in dispute. 


Statutory Notes and Related Subsidiaries Effective Date of XXXX Amendment Amendment by Pub. XXXX XXXX effective on the designated transfer date, see section XXXX of Pub. XXXX XXXX, set out as a note under section XXXX of Title XXXX, Government Organization and Employees. 

Effective Date of XXXX Amendment Amendment by XXXX. XXXX XXXX effective on expiration of XXXX years and XXXX months after XXXX. XXXX, XXXX, 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 XXXX. XXXX XXXX, set out as a note under section 1602 of this title. 

Effective Date Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX, provided that : " This title [ enacting this section and sections XXXX to XXXX of this title, amending sections XXXX, XXXX, XXXX, XXXX, XXXX, and XXXX of this title, and enacting provision set out as a note under section XXXX of this title ] takes effect upon the expiration of one year after the date of its enactment [ XXXX XXXX, XXXX ]. '' XXXX XXXX XXXX XXXX of XXXX. XXXX XXXX, which is classified principally to this part, is known as the " Fair Credit Billing Act ''. For complete classification of Title III to the Code, see Short Title of 1974 Amendment note set out under section 1601 of this title and Tables.

1666a. Regulation of credit reports ( a ) Reports by creditor on obligor 's failure to pay amount regarded as billing error After receiving a notice from an obligor as provided in section 1666 ( a ) of this title, a creditor or his agent may not directly or indirectly threaten to report to any person adversely on the obligor 's credit rating or credit standing because of the obligor 's failure to pay the amount indicated by the obligor under section 1666 ( a ) ( 2 ) of this title, and such amount may not be reported as delinquent to any third party until the creditor has met the requirements of section 1666 of this title and has allowed the obligor the same number of days ( not less than ten ) thereafter to make payment as is provided under the credit agreement with the obligor for the payment of undisputed amounts. 

( b ) Reports by creditor on delinquent amounts in dispute ; notification of obligor of parties notified of delinquency If a creditor receives a further written notice from an obligor that an amount is still in dispute within the time allowed for payment under subsection ( a ) of this section, a creditor may not report to any third party that the amount of the obligor is delinquent because the obligor has failed to pay an amount which he has indicated under section 1666 ( a ) ( 2 ) of this title, unless the creditor also reports that the amount is in dispute and, at the same time, notifies the obligor of the name and address of each party to whom the creditor is reporting information concerning the delinquency. 

( c ) Reports by creditor of subsequent resolution of delinquent amounts A creditor shall report any subsequent resolution of any delinquencies reported pursuant to subsection ( b ) to the parties to whom such delinquencies were initially reported. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX. ) 1666b. Timing of payments ( a ) Time to make payments A creditor may not treat a payment on a credit card account under an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 1637 ( b ) of this title is mailed or delivered to the consumer not later than 21 days before the payment due date.

( b ) Grace period If an open end consumer credit plan provides a time period within which an obligor may repay any portion of the credit extended without incurring an additional finance charge, such additional finance charge may not be imposed with respect to such portion of the credit extended for the billing cycle of which such period is a part, unless a statement which includes the amount upon which the finance charge for the period is based was mailed or delivered to the consumer not later than 21 days before the date specified in the statement by which payment must be made in order to avoid imposition of that finance charge. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; amended Pub. XXXX XXXX, title XXXX, XXXX ( b ) ( XXXX ), XX/XX/XXXX, XXXX XXXX. XXXX ; Pub. XXXX XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX. ) Editorial Notes Amendments XXXX. XXXX XXXX amended section generally, adding provisions relating to late payments and delivery of periodic statements, substituting provisions requiring a 21-day statement delivery period for provisions requiring a 14-day period before the imposition of additional finance charges, and striking provisions relating to excusable cause for creditor 's failure to make timely mailing or delivery of periodic statements. 

XXXX. ( a ). Pub. XXXX XXXX inserted " a credit card account under '' after " payment on ''. 


XXXX XXXX and Related Subsidiaries Effective Date Pub. XXXX XXXX, title XXXX, XXXX ( b ) ( XXXX ), XX/XX/XXXX, XXXX XXXX. XXXX, provided that : " Notwithstanding section XXXX [ see Effective Date of XXXX Amendment note set out under section 1602 of this title ], section 163 of the Truth in Lending Act [ 15 U.S.C. 1666b ], as amended by this subsection, shall become effective 90 days after the date of enactment of this AcXXXX [ XX/XX/XXXX ]. '' 1666c. Prompt and fair crediting of payments ( 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 XXXXXXXX XXXX. 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.

( c ) Changes by card issuer 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. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; amended Pub. XXXX XXXX, title XXXX, XXXX, XX/XX/XXXX, XXXX XXXX. XXXX ; Pub. XXXX XXXX, title X, XXXX, XXXX ( XXXX ), XX/XX/XXXX, XXXX Stat. XXXX, XXXX. ) Editorial Notes Codification Pub XXXX XXXX, XXXX ( XXXX ), which directed the substitution of " Bureau '' for " Board '' wherever appearing in title I of Pub. XXXX XXXX, was executed to this section, which is section 164 of title XXXX of XXXX. XXXX XXXX. Section 1087 of XXXX. XXXX XXXX, which directed the making of an identical amendment in title XXXX of XXXX. XXXX XXXX, which added this section to title XXXX of XXXX. XXXX XXXX, has not been executed. 

Amendments XXXX. ( a ). Pub. XXXX XXXX, XXXX ( XXXX ), substituted " Bureau '' for " Board ''. See Codification note above. 

XXXX. XXXX XXXX, XXXX ( XXXX ), 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. 

XXXX. ( a ). Pub. XXXX XXXX, XXXX ( XXXX ), ( XXXX ), inserted ", by XXXXXXXX XXXX. on the date on which such payment is due, '' after " in readily identifiable form '' and substituted " manner, and location '' for " manner, location, and time ''. 

XXXX. ( b ), ( c ). Pub. XXXX XXXX, XXXX ( XXXX ), added subsecs. ( b ) and ( c ). 


Statutory Notes and Related Subsidiaries Effective Date of XXXX Amendment Amendment by Pub. XXXX XXXX effective on the designated transfer date, see section XXXX of Pub. XXXX XXXX, set out as a note under section 552a of Title 5, Government Organization and Employees. 

Effective Date of XXXX Amendment Amendment by XXXX. XXXX XXXX effective 9 months after XX/XX/XXXX, except as otherwise specifically provided, see section XXXX of Pub. XXXX XXXX, set out as a note under section 1602 of this title.

1666d. Treatment of credit balances Whenever a credit balance in excess of {$1.00} 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 XXXX 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 can not be traced through the consumer 's last known address or telephone number. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; amended Pub. XXXX XXXX, title VI, XXXX ( a ), XXXX. XXXX, XXXX, XXXX XXXX. XXXX. ) XXXX XXXX Amendments XXXX. XXXX XXXX substituted provisions relating to duties of creditor whenever a credit balance in excess of {$1.00} 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 XXXX Amendment Amendment by Pub. XXXX XXXX effective on expiration of XXXX years and XXXX months after XXXX. XXXX, XXXX, with all regulations, forms, and clauses required to be prescribed to be promulgated at least XXXX 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. 96221, set out as a note under section 1602 of this title.

1666e. Notification of credit card issuer by seller of return of goods, etc., by obligor ; credit for account of obligor With respect to any sales transaction where a credit card has been used to obtain credit, where the seller is a person other than the card issuer, and where the seller accepts or allows a return of the goods or forgiveness of a debit for services which were the subject of such sale, the seller shall promptly transmit to the credit card issuer, a credit statement with respect thereto and the credit card issuer shall credit the account of the obligor for the amount of the transaction. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX. ) XXXX. 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 1 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. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; amended Pub. XXXX XXXX, XXXX ( c ) ( XXXX ), XXXX XXXX, XXXX, XXXX XXXX. XXXX ; Pub. XXXX XXXX, title XXXX, XXXX, XX/XX/XXXX, XXXX XXXX. XXXX. ) Editorial Notes Amendments 1981Subsec. ( b ). Pub. L. 9725 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 ''. 

XXXX. ( a ). Pub. XXXX XXXX temporarily designated existing provisions as par. ( XXXX ) and added par. ( XXXX ). See Termination Date of XXXX XXXX note below. 


Statutory Notes and Related Subsidiaries Termination Date of XXXX Amendment Section XXXX ( c ) ( XXXX ) of Pub. XXXX XXXX, as amended by Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX ; Pub. XXXX XXXX, title XXXX, XXXX, XX/XX/XXXX, XXXX XXXX. XXXX, provided that : " The amendments made by paragraph ( XXXX ) [ amending this section ] shall cease to be effective on XX/XX/XXXX. '' Nullification of Board Rules and Regulations Under Subsection ( b ) of This Section in Effect on XX/XX/XXXX Pub. XXXX XXXX, title XXXX, XXXX, XX/XX/XXXX, XXXX XXXX. XXXX, 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 [ XX/XX/XXXX ], is null and void. '' 1 So in original. Probably should be preceded by " a ''. 

1666g. Tie-in services prohibited for issuance of credit card Notwithstanding any agreement to the contrary, a card issuer may not require a seller, as a condition to participating in a credit card plan, to open an account with or procure any other service from the card issuer or its subsidiary or agent. 

( Pub. XXXX XXXX, title XXXX, XXXX, as added Pub. XXXX XXXX, title XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX. XXXX. ) 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

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation