See interpretation of Paragraph 13(g)(3)
in Supplement I. 1026.38 Content of disclosures for certain mortgage transactions (Closing Disclosure). Multiple entities. 1026.13 Billing error resolution. | Consumer Financial Purchases made by use of a check guarantee card in conjunction with a cash advance check (or by cash advance checks alone). 1. (2) The card issuer shall, within 3 business days from receipt of a credit statement, credit the consumer's account with the amount of the refund. Also, the creditor may report the account as delinquent if undisputed amounts remain unpaid. 2. See interpretation of 12(b)(5) Business Use of Credit Cards
in Supplement I, (c) Right of cardholder to assert claims or defenses against card issuer . B. A creditor that has fully complied with the requirements of this section has no further responsibilities under this section (other than as provided in paragraph (g)(4) of this section) if a consumer reasserts substantially the same billing error. Transactions not involving card. See interpretation of 12(d) Offsets by Card Issuer Prohibited
in Supplement I. The regulation does not prohibit the card issuer from: i. Substitution - examples. The provisions of 1026.13(d) and (g) apply only to the credit portion of the transaction. The card issuer is not prohibited under 1026.12(d) from automatically deducting the amount due on the periodic statement on the 25th of each month, or on an earlier date in each calendar month, from a deposit account held by the card issuer, if the deductions are pursuant to a plan that is authorized in writing by the cardholder (as discussed in comment 12(d)(3)1) and comply with the limitations in 1026.13(d)(1). Differences in the amount of an error (for example, the customer asserts a $55.00 error but the error was only $53.00). vi. 1026.54 Limitations on the imposition of finance charges. 1. (e) Procedures if billing error occurred as asserted. For purposes of this provision, cardholder includes any person (including organizations) to whom a credit card is issued for any purpose, including business. Examples. 1026.22 Determination of annual percentage rate. Incidental credit under an agreement with respect to an account other than a prepaid account. The Fair Credit Billing Act can offer consumer protections, depending on the charge. For terms and conditions required to be disclosed under 1026.6, all replacement cards are issued subject to the same terms and conditions, except that a creditor may vary terms for which no change in terms notice is required under 1026.9(c); and. For example, when merchandise is ordered by telephone or the Internet by a person without authority to do so, using a credit card account number by itself or with other information that appears on the card (for example, the card expiration date and a 3- or 4-digit cardholder identification number), no liability may be imposed on the cardholder. This is true even though the $15 credit transaction is treated as nonsale credit under 1026.8(b). This is true regardless of whether $10 is debited from the asset feature and $15 of credit is drawn directly from the covered separate credit feature without a transfer to the asset feature of the prepaid account to cover the amount of the transaction, or whether $15 of credit is transferred from the covered separate credit feature to the asset feature of the prepaid account and a $25 transaction is debited from the asset feature to cover the amount of the transaction. Explore guides to help you plan for big financial goals, Subpart B - Open-End Credit 1026.51026.16, Subpart C - Closed-End Credit 1026.171026.24, Subpart D - Miscellaneous 1026.251026.30, Subpart E - Special Rules for Certain Home Mortgage Transactions 1026.311026.45, Subpart F - Special Rules for Private Education Loans 1026.461026.48, Subpart G - Special Rules Applicable to Credit Card Accounts and Open-End Credit Offered to College Students 1026.511026.61, Supplement I to Part 1026 - Official Interpretations, Official interpretation of 12(a) Issuance of Credit Cards, Official interpretation of Paragraph 12(a)(1), Official interpretation of Paragraph 12(a)(2), Official interpretation of 12(b) Liability of Cardholder for Unauthorized Use, Official interpretation of 12(b)(1)(ii) Limitation on Amount, Official interpretation of 12(b)(2) Conditions of Liability, Official interpretation of Paragraph 12(b)(2)(ii), Official interpretation of Paragraph 12(b)(2)(iii), Official interpretation of 12(b)(3) Notification to Card Issuer, Official interpretation of 12(b)(5) Business Use of Credit Cards, Official interpretation of 12(c) Right of Cardholder To Assert Claims or Defenses Against Card Issuer, Official interpretation of 12(c)(1) General Rule, Official interpretation of 12(c)(2) Adverse Credit Reports Prohibited, Official interpretation of 12(c)(3) Limitations, Official interpretation of Paragraph 12(c)(3)(i)(A), Official interpretation of Paragraph 12(c)(3)(i)(B), Official interpretation of 12(c)(3)(ii) Exclusion, Official interpretation of 12(d) Offsets by Card Issuer Prohibited, Official interpretation of Paragraph 12(d)(1), Official interpretation of Paragraph 12(d)(2), Official interpretation of Paragraph 12(d)(3), Official interpretation of 12(e) Prompt Notification of Returns and Crediting of Refunds, Official interpretation of Paragraph 12(e)(1), Official interpretation of Paragraph 12(e)(2). The creditor must credit the consumer's account under 1005.11(c) with any finance or other charges incurred as a result of the alleged error. The offset prohibition applies to any indebtedness arising from transactions under a credit card plan, including accrued finance charges and other charges on the account. 4. Credit card obtained through robbery or fraud. See interpretation of Paragraph 12(c)(3)(i)(A)
in Supplement I. For a security interest to qualify for the exception under 1026.12(d)(2) the following conditions must be met: i. Issuance of non-credit cards other than prepaid cards. 1. For example, the creditor may include a signature line on a billing rights form that the consumer may send in to provide notice of the claim. ii. See interpretation of 12(e) Prompt Notification of Returns and Crediting of Refunds
in Supplement I. The creditor need not establish costly procedures to fulfill this requirement. 1. Regulation Z Automatic payment plans - additional exceptions. (i) Definition of unauthorized use. If the cardholder has the option to accept or reject the automatic debit feature (such option may be required under section 913 of the Electronic Fund Transfer Act and Regulation E, 12 CFR 1005.10(e)), the fact that the option exists should be clearly indicated. 1026.54 Limitations on the imposition of finance charges. In periodic statements that are combined with other information, the error resolution procedures are triggered only if the consumer asserts a computational billing error in the credit-related portion of the periodic statement. iii. Truth in Lending Act (Reg Z) TILA promotes the informed use of consumer credit by requiring timely disclosure about its costs. 1. See interpretation of 12(c) Right of Cardholder To Assert Claims or Defenses Against Card Issuer
in Supplement I. If the card issuer obtains a judgment against the cardholder, and if state and other applicable law and the terms of the judgment do not so prohibit, the card issuer may offset the indebtedness against the cardholder's deposit account. A creditor shall not accelerate any part of the consumer's indebtedness or restrict or close a consumer's account solely because the consumer has exercised in good faith rights provided by this section. In this case, $10 is debited from the asset feature and $15 of credit is drawn directly from the covered separate credit feature accessed by the hybrid prepaid-credit card without any transfer of funds into the asset feature of the prepaid account to cover the amount of the purchase. Subsequent revisions to the regulation in the 1970s Unauthorized transaction. 1026.32 Requirements for high-cost mortgages. 1. 2. Requesting a copy of a police report, if one was filed. 1026.26 Use of annual percentage rate in oral disclosures. (i) General. When a person who honors a credit card fails to resolve satisfactorily a dispute as to property or services purchased with the credit card in a consumer credit transaction, the cardholder may assert against the card issuer all claims (other than tort claims) and defenses arising out of the transaction and relating to the failure to resolve the dispute. If a separate billing error correction notice is provided, the accompanying or subsequent periodic statement reflecting the corrected amount may simply identify it as credit. Finality of error resolution procedure. Once the statement is provided, the consumer has another 60 days to assert any billing errors reflected on it. G. Requesting a copy of a police report, if one was filed. Identification by magnetic strip. B. (2) Adverse credit reports prohibited. Variance of card from request. 1026.34 Prohibited acts or practices in connection with high-cost mortgages. Scope of prohibition. Notification may be given, at the option of the person giving it, in person, by telephone, or in writing. ii. 1026.36 Prohibited acts or practices and certain requirements for credit secured by a dwelling. Requesting information regarding the cardholder's knowledge of the person who allegedly used the card or of that person's authority to do so. eCFR :: 12 CFR Part 1026 -- Truth in Lending (Regulation Z) Credit Card Billing Disputes - LawServer Putting the law at your 3. ii. If the periodic statement fails to reflect a credit to the account, the 60-day period runs from transmittal of the statement on which the credit should have appeared. With respect to covered separate credit features accessible by hybrid prepaid-credit cards as defined in 1026.61, a card issuer is not prohibited under 1026.12(d) from periodically deducting all or part of the cardholders credit card debt from a deposit account (including the prepaid account) held with the card issuer (subject to the limitations of 1026.13(d)(1)) under a plan that is authorized in writing by the cardholder, so long as the creditor does not deduct all or part of the cardholders credit card debt from the deposit account more frequently than once per calendar month, pursuant to such a plan. The card issuer need not actually post the refund to the consumer's account within three business days after receiving the credit statement, provided that it credits the account as of a date within that time period. Data Center Services. Products & Services. GSA A creditor may be subject to the forfeiture penalty under 15 U.S.C. 1. Placement of the security agreement on a separate page, or otherwise separating the security interest provisions from other contract and disclosure provisions. 3. (2) With regard to a covered separate credit feature and an asset feature of a prepaid account where both are accessible by a hybrid prepaid-credit card as defined in 1026.61, an extension of credit that is incident to an electronic fund transfer occurs when the hybrid prepaid-credit card accesses both funds in the asset feature of the prepaid account and a credit extension from the credit feature with respect to a particular transaction. The procedures involved in investigating claims may differ, but actions such as the following represent steps that a card issuer may take, as appropriate, in conducting a reasonable investigation: i.