---
kind: "section"
citation: "15 U.S.C. § 1666c"
title: "15"
title_heading: "Commerce and Trade"
number: "1666c"
heading: "Prompt and fair crediting of payments"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1666c"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part D — Credit Billing"
---

# §1666c. Prompt and fair crediting of payments

- (a) **In general—** Payments received from an obligor under an [open end consumer credit plan](/usc/15/1602.md?p=j) by the [creditor](/usc/15/1602.md?p=g) shall be posted promptly to the obligor’s [account](/usc/15/1681a.md?p=r-4) as specified in regulations of the [Bureau](/usc/15/1602.md?p=b). Such regulations shall prevent a finance charge from being imposed on any obligor if the [creditor](/usc/15/1602.md?p=g) 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](/usc/15/1602.md?p=g) to avoid the imposition thereof.
- (b) **Application of payments—**
  - (1) **In general—** Upon receipt of a payment from a [cardholder](/usc/15/1602.md?p=n), the [card issuer](/usc/15/1602.md?p=o) 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](/usc/15/1602.md?p=g) shall allocate the entire amount paid by the [consumer](/usc/15/1681a.md?p=c) 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](/usc/15/1602.md?p=o) makes a material change in the mailing address, office, or procedures for handling [cardholder](/usc/15/1602.md?p=n) payments, and such change causes a material delay in the crediting of a [cardholder](/usc/15/1602.md?p=n) payment made during the 60-day period following the date on which such change took effect, the [card issuer](/usc/15/1602.md?p=o) may not impose any late fee or finance charge for a late payment on the [credit card](/usc/15/1602.md?p=l) [account](/usc/15/1681a.md?p=r-4) to which such payment was credited.

## Source credit

(Pub. L. 90–321, title I, § 164, as added Pub. L. 93–495, title III, § 306, Oct. 28, 1974, 88 Stat. 1514; amended Pub. L. 111–24, title I, § 104, May 22, 2009, 123 Stat. 1741; Pub. L. 111–203, title X, §§ 1087, 1100A(2), July 21, 2010, 124 Stat. 2086, 2107.)

## Notes

### Editorial Notes

### Codification

Pub L. 111–203, § 1100A(2), which directed the substitution of “Bureau” for “Board” wherever appearing in title I of Pub. L. 90–321, was executed to this section, which is section 164 of title I of Pub. L. 90–321. Section 1087 of Pub. L. 111–203, which directed the making of an identical amendment in title III of Pub. L. 93–495, which added this section to title I of Pub. L. 90–321, has not been executed.

### Amendments

2010—Subsec. (a). Pub. L. 111–203, § 1100A(2), substituted “Bureau” for “Board”. See Codification note above.

2009—Pub. L. 111–24, § 104(1), 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.

Subsec. (a). Pub. L. 111–24, § 104(2), (3), inserted “, by 5:00 p.m. on the date on which such payment is due,” after “in readily identifiable form” and substituted “manner, and location” for “manner, location, and time”.

Subsecs. (b), (c). Pub. L. 111–24, § 104(4), added subsecs. (b) and (c).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.

### Effective Date of 2009 Amendment

Amendment by Pub. L. 111–24 effective 9 months after May 22, 2009, except as otherwise specifically provided, see section 3 of Pub. L. 111–24, set out as a note under section 1602 of this title.