---
kind: "section"
citation: "15 U.S.C. § 1615"
title: "15"
title_heading: "Commerce and Trade"
number: "1615"
heading: "Prohibition on use of “Rule of 78’s” in connection with mortgage refinancings and other consumer loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1615"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part A — General Provisions"
---

# §1615. Prohibition on use of “Rule of 78’s” in connection with mortgage refinancings and other consumer loans

- (a) **Prompt refund of unearned interest required—**
  - (1) **In general—** If a [consumer](/usc/15/1681a.md?p=c) prepays in full the financed amount under any [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction, the [creditor](/usc/15/1602.md?p=g) shall promptly refund any unearned portion of the interest charge to the [consumer](/usc/15/1681a.md?p=c).
  - (2) **Exception for refund of de minimus 1 amount—** No refund shall be required under [paragraph (1)](#a-1) with respect to the prepayment of any [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction if the total amount of the refund would be less than $1.
  - (3) **Applicability to refinanced transactions and acceleration by the creditor—** This subsection shall apply with respect to any prepayment of a [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction described in [paragraph (1)](#a-1) without regard to the manner or the reason for the prepayment, including—
    - (A) any prepayment made in connection with the refinancing, consolidation, or restructuring of the transaction; and
    - (B) any prepayment made as a result of the acceleration of the obligation to repay the amount due with respect to the transaction.
- (b) **Use of “Rule of 78’s” prohibited—** For the purpose of calculating any refund of interest required under [subsection (a)](#a) for any precomputed [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction of a term exceeding 61 months which is consummated after September 30, 1993, the [creditor](/usc/15/1602.md?p=g) shall compute the refund based on a method which is at least as favorable to the [consumer](/usc/15/1681a.md?p=c) as the actuarial method.
- (c) **Statement of prepayment amount—**
  - (1) **In general—** Before the end of the 5-day period beginning on the date an oral or written request is received by a [creditor](/usc/15/1602.md?p=g) from a [consumer](/usc/15/1681a.md?p=c) for the disclosure of the amount due on any precomputed [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) [account](/usc/15/1681a.md?p=r-4), the [creditor](/usc/15/1602.md?p=g) or assignee shall provide the [consumer](/usc/15/1681a.md?p=c) with a statement of—
    - (A) the amount necessary to prepay the [account](/usc/15/1681a.md?p=r-4) in full; and
    - (B) if the amount disclosed pursuant to [subparagraph (A)](#c-1-A) includes an amount which is required to be refunded under this section with respect to such prepayment, the amount of such refund.
  - (2) **Written statement required if request is in writing—** If the customer’s request is in writing, the statement under [paragraph (1)](#c-1) shall be in writing.
  - (3) **1 free annual statement—** A [consumer](/usc/15/1681a.md?p=c) shall be entitled to obtain 1 statement under [paragraph (1)](#c-1) each year without charge.
  - (4) **Additional statements subject to reasonable fees—** Any [creditor](/usc/15/1602.md?p=g) may impose a reasonable fee to cover the cost of providing any statement under [paragraph (1)](#c-1) to any [consumer](/usc/15/1681a.md?p=c) in addition to the 1 free annual statement required under [paragraph (3)](#c-3) if the amount of the charge for such additional statement is disclosed to the [consumer](/usc/15/1681a.md?p=c) before furnishing such statement.
- (d) **Definitions—** For the purpose of this section—
  - (1) **Actuarial method—** The term “actuarial method” means the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed.
  - (2) **Consumer, credit—** The terms “[consumer](/usc/15/1681a.md?p=c)” and “[creditor](/usc/15/1602.md?p=g)” have the meanings given to such terms in [section 1602 of this title](/usc/15/1602.md).
  - (3) **Creditor—** The term “[creditor](/usc/15/1602.md?p=g)”—
    - (A) has the meaning given to such term in [section 1602 of this title](/usc/15/1602.md); and
    - (B) includes any assignee of any [creditor](/usc/15/1602.md?p=g) with respect to [credit](/usc/15/1602.md?p=f) extended in connection with any [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction and any subsequent assignee with respect to such [credit](/usc/15/1602.md?p=f).

## Footnotes

[^1]: So in original. Probably should be “de minimis”.

## Source credit

(Pub. L. 102–550, title IX, § 933, Oct. 28, 1992, 106 Stat. 3891.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Housing and Community Development Act of 1992, and not as part of the Consumer Credit Protection Act which comprises this chapter.