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

# §1666d. Treatment of credit balances


Whenever a [credit](/usc/15/1602.md?p=f) balance in excess of $1 is created in connection with a [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction through (1) transmittal of funds to a [creditor](/usc/15/1602.md?p=g) in excess of the total balance due on an [account](/usc/15/1681a.md?p=r-4), (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](/usc/15/1602.md?p=g) shall—

- (A) [credit](/usc/15/1602.md?p=f) the amount of the [credit](/usc/15/1602.md?p=f) balance to the [consumer](/usc/15/1681a.md?p=c)’s [account](/usc/15/1681a.md?p=r-4);
- (B) refund any part of the amount of the remaining [credit](/usc/15/1602.md?p=f) balance, upon request of the [consumer](/usc/15/1681a.md?p=c); and
- (C) make a good faith effort to refund to the [consumer](/usc/15/1681a.md?p=c) by cash, check, or money order any part of the amount of the [credit](/usc/15/1602.md?p=f) balance remaining in the [account](/usc/15/1681a.md?p=r-4) for more than six months, except that no further action is required in any case in which the [consumer](/usc/15/1681a.md?p=c)’s current location is not known by the [creditor](/usc/15/1602.md?p=g) and cannot be traced through the [consumer](/usc/15/1681a.md?p=c)’s last known address or telephone number.

## Source credit

(Pub. L. 90–321, title I, § 165, as added Pub. L. 93–495, title III, § 306, Oct. 28, 1974, 88 Stat. 1514; amended Pub. L. 96–221, title VI, § 621(a), Mar. 31, 1980, 94 Stat. 184.)

## Notes

### Editorial Notes

### Amendments

1980—Pub. L. 96–221 substituted provisions relating to duties of creditor whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction, for provisions relating to duties of creditor whenever an obligor transmits funds to creditor in excess of the total balance due on an open end consumer credit account.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1980 Amendment

Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and allowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title.