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Truth in Lending: § 1665d. Reasonable penalty fees on open end consumer credit plans

(a) In general

The amount of any penalty fee or charge that a card issuer may impose with respect to a credit card account under an open end consumer credit plan in connection with any omission with respect to, or violation of, the cardholder agreement, including any late payment fee, over-the-limit fee, or any other penalty fee or charge, shall be reasonable and proportional to such omission or violation.

(b) Rulemaking required

Truth in Lending: § 1665e. Consideration of ability to repay

A card issuer may not open any credit card account for any consumer under an open end consumer credit plan, or increase any credit limit applicable to such account, unless the card issuer considers the ability of the consumer to make the required payments under the terms of such account.

[Pub. L. No. 111-24, tit. I, § 109, 123 Stat. 1743 (May 22, 2009)]

Truth in Lending: § 1666b. Timing of payments [TILA § 163]

(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

Truth in Lending: § 1666c. Prompt and fair crediting of payments [TILA § 164]

(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.

Truth in Lending: § 1666d. Treatment of credit balances [TILA § 165]

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;

Truth in Lending: § 1666e. Notification of credit card issuer by seller of return of goods, etc., by obligor; credit for account of obligor [TILA § 166]

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. L. No. 90-321, as added Pub. L. No. 93-495, 88 Stat. 1514 (Oct. 28, 1974)]

Truth in Lending: § 1666f. Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts [TILA § 167]

(a) Cash discounts

With respect to credit 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

Collection Actions: Listing of Provisions

Title 16—Commercial Practices

Chapter I—Federal Trade Commission

* * *

Subchapter D—Trade Regulation Rules

* * *

Part 444—Credit Practices

Sec.

444.1 Definitions

444.2 Unfair credit practices

444.3 Unfair or deceptive cosigner practices

444.4 Late charges

444.5 State exemptions

Collection Actions: 16 C.F.R. § 444.1 Definitions

(a) Lender. A person who engages in the business of lending money to consumers within the jurisdiction of the Federal Trade Commission.

(b) Retail installment seller. A person who sells goods or services to consumers on a deferred payment basis or pursuant to a lease-purchase arrangement within the jurisdiction of the Federal Trade Commission.

(c) Person. An individual corporation, or other business organization.

Collection Actions: 16 C.F.R. § 444.2 Unfair credit practices

(a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is an unfair act or practice within the meaning of Section 5 of that Act for a lender or retail installment seller directly or indirectly to take or receive from a consumer an obligation that:

Collection Actions: 16 C.F.R. § 444.3 Unfair or deceptive cosigner practices

(a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is:

(1) A deceptive act or practice within the meaning of section 5 of that Act for a lender or retail installment seller, directly or indirectly, to misrepresent the nature or extent of cosigner liability to any person.

Collection Actions: 16 C.F.R. § 444.4 Late charges

(a) In connection with collecting a debt arising out of an extension of credit to a consumer in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is an unfair act or practice within the meaning of section 5 of that Act for a creditor, directly or indirectly, to levy or collect any delinquency charge on a payment, which payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, when the only delinquency is attributable to late fee(s) or delinquency c

Collection Actions: 16 C.F.R. § 444.5 State exemptions

(a) If, upon application to the Federal Trade Commission by an appropriate State agency, the Federal Trade Commission determines that:

(1) There is a State requirement or prohibition in effect that applies to any transaction to which a provision of this rule applies; and

(2) The State requirement or prohibition affords a level of protection to consumers that is substantially equivalent to, or greater than, the protection afforded by this rule;

Truth in Lending: Amendment History and Title and Chapter

Competitive Equality Banking Act of 1987, 12 U.S.C. § 3806, Pub. L. No. 100-86, 101 Stat. 662, Title XII, § 1204 (Aug. 10, 1987), as amended by Pub. L. No. 102-550, 106 Stat. 3893, Title IX, § 952 (Oct. 28, 1992).

TITLE 12. BANKS AND BANKING

CHAPTER 39—ALTERNATIVE MORTGAGE TRANSACTIONS

Truth in Lending: § 3806. Adjustable rate mortgage caps

(a) In general

Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan.

(b) Regulations

The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section.

(c) Enforcement

Collection Actions: 31 C.F.R. § 285.4 Offset of Federal benefit payments to collect past-due, legally enforceable nontax debt

(a) Scope.

(1) This section sets forth special rules applicable to the offset of Federal benefit payments payable to an individual under the Social Security Act (other than Supplemental Security Income (SSI) payments), part B of the Black Lung Benefits Act, or any law administered by the Railroad Retirement Board (other than payments that such Board determines to be tier 2 benefits) to collect delinquent nontax debt owed to the United States.