---
kind: "section"
citation: "15 U.S.C. § 1666h"
title: "15"
title_heading: "Commerce and Trade"
number: "1666h"
heading: "Offset of cardholder’s indebtedness by issuer of credit card with funds deposited with issuer by cardholder; remedies of creditors under State law not affected"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1666h"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part D — Credit Billing"
---

# §1666h. Offset of cardholder’s indebtedness by issuer of credit card with funds deposited with issuer by cardholder; remedies of creditors under State law not affected

- (a) **Offset against consumer’s funds—** A [card issuer](/usc/15/1602.md?p=o) may not take any action to offset a [cardholder](/usc/15/1602.md?p=n)’s indebtedness arising in connection with a [consumer](/usc/15/1681a.md?p=c) [credit](/usc/15/1602.md?p=f) transaction under the relevant [credit card](/usc/15/1602.md?p=l) plan against funds of the [cardholder](/usc/15/1602.md?p=n) held on deposit with the [card issuer](/usc/15/1602.md?p=o) unless—
  - (1) such action was previously authorized in writing by the [cardholder](/usc/15/1602.md?p=n) in accordance with a [credit](/usc/15/1602.md?p=f) plan whereby the [cardholder](/usc/15/1602.md?p=n) agrees periodically to pay debts incurred in his open end [credit](/usc/15/1602.md?p=f) [account](/usc/15/1681a.md?p=r-4) by permitting the [card issuer](/usc/15/1602.md?p=o) periodically to deduct all or a portion of such debt from the [cardholder](/usc/15/1602.md?p=n)’s deposit [account](/usc/15/1681a.md?p=r-4), and
  - (2) such action with respect to any outstanding disputed amount not be taken by the [card issuer](/usc/15/1602.md?p=o) upon request of the [cardholder](/usc/15/1602.md?p=n).

  In the case of any [credit card](/usc/15/1602.md?p=l) [account](/usc/15/1681a.md?p=r-4) in existence on the effective date of this section, the previous written authorization referred to in [clause (1)](#a-1) shall not be required until the date (after such effective date) when such [account](/usc/15/1681a.md?p=r-4) is renewed, but in no case later than one year after such effective date. Such written authorization shall be deemed to exist if the [card issuer](/usc/15/1602.md?p=o) has previously notified the [cardholder](/usc/15/1602.md?p=n) that the use of his [credit card](/usc/15/1602.md?p=l) [account](/usc/15/1681a.md?p=r-4) will subject any funds which the [card issuer](/usc/15/1602.md?p=o) holds in deposit [accounts](/usc/15/1681a.md?p=r-4) of such [cardholder](/usc/15/1602.md?p=n) to offset against any amounts due and payable on his [credit card](/usc/15/1602.md?p=l) [account](/usc/15/1681a.md?p=r-4) which have not been paid in accordance with the terms of the [agreement](/usc/15/7a.md?p=2) between the [card issuer](/usc/15/1602.md?p=o) and the [cardholder](/usc/15/1602.md?p=n).

- (b) **Attachments and levies—** This section does not alter or affect the right under [State](/usc/15/1602.md?p=s) law of a [card issuer](/usc/15/1602.md?p=o) to attach or otherwise levy upon funds of a [cardholder](/usc/15/1602.md?p=n) held on deposit with the [card issuer](/usc/15/1602.md?p=o) if that remedy is constitutionally available to [creditors](/usc/15/1602.md?p=g) generally.

## Source credit

(Pub. L. 90–321, title I, § 169, as added Pub. L. 93–495, title III, § 306, Oct. 28, 1974, 88 Stat. 1515.)

## Notes

### Editorial Notes

### References in Text

For effective date of this section, referred to in subsec. (a), see Effective Date note set out under section 1666 of this title.