---
kind: "section"
citation: "12 C.F.R. § 226.54"
title: "12"
number: "226.54"
heading: "Limitations on the imposition of finance charges."
url: "https://uscodex.org/cfr/12/226.54"
---

# §226.54. Limitations on the imposition of finance charges.

- (a) **Limitations on imposing finance charges as a result of the loss of a grace period—**
  - (1) **General rule.** Except as provided in [paragraph (b)](#b) of this section, a card issuer must not impose finance charges as a result of the loss of a grace period on a credit card account under an open-end (not home-secured) consumer credit plan if those finance charges are based on:
    - (i) Balances for days in billing cycles that precede the most recent billing cycle; or
    - (ii) Any portion of a balance subject to a grace period that was repaid prior to the expiration of the grace period.
  - (2) **Definition of grace period.** For purposes of [paragraph (a)(1)](#a-1) of this section, “grace period” has the same meaning as in [§ 226.5(b)(2)(ii)(B)(3)](/cfr/12/226.5.md?p=b-2-ii-B-3).
- (b) **Exceptions.** [Paragraph (a)](#a) of this section does not apply to:
  - (1) Adjustments to finance charges as a result of the resolution of a dispute under [§ 226.12](/cfr/12/226.12.md) or [§ 226.13](/cfr/12/226.13.md); or
  - (2) **Adjustments to finance charges as a result of the return of a payment.**

## Notes

### Source

Source: 75 FR 7818, Feb. 22, 2010, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 3806; 15 U.S.C. 1604, 1637(c)(5), 1639(l), and 1639h; Pub. L. 111-24, section 2, 123 Stat. 1734; Pub. L. 111-203, 124 Stat. 1376.

### Source

Source: Reg. Z, 46 FR 20892, Apr. 7, 1981, unless otherwise noted.