---
kind: "section"
citation: "15 U.S.C. § 1666i"
title: "15"
title_heading: "Commerce and Trade"
number: "1666i"
heading: "Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1666i"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter I — Consumer Credit Cost Disclosure"
  - "Part D — Credit Billing"
---

# §1666i. Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses

- (a) **Claims and defenses assertible—** Subject to the limitation contained in [subsection (b)](#b), a [card issuer](/usc/15/1602.md?p=o) who has issued a [credit card](/usc/15/1602.md?p=l) to a [cardholder](/usc/15/1602.md?p=n) pursuant to an [open end consumer credit plan](/usc/15/1602.md?p=j) shall be subject to all claims (other than tort claims) and defenses arising out of any transaction in which the [credit card](/usc/15/1602.md?p=l) is used as a method of payment or extension of [credit](/usc/15/1602.md?p=f) if (1) the obligor has made a good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to the transaction from the [person](/usc/15/1602.md?p=e) honoring the [credit card](/usc/15/1602.md?p=l); (2) the amount of the initial transaction exceeds $50; and (3) the place where the initial transaction occurred was in the same [State](/usc/15/1602.md?p=s) as the mailing address previously provided by the [cardholder](/usc/15/1602.md?p=n) or was within 100 miles from such address, except that the limitations set forth in clauses (2) and (3) with respect to an obligor’s right to assert claims and defenses against a [card issuer](/usc/15/1602.md?p=o) shall not be applicable to any transaction in which the [person](/usc/15/1602.md?p=e) honoring the [credit card](/usc/15/1602.md?p=l) (A) is the same [person](/usc/15/1602.md?p=e) as the [card issuer](/usc/15/1602.md?p=o), (B) is controlled by the [card issuer](/usc/15/1602.md?p=o), (C) is under direct or indirect common control with the [card issuer](/usc/15/1602.md?p=o), (D) is a franchised dealer in the [card issuer](/usc/15/1602.md?p=o)’s products or services, or (E) has obtained the order for such transaction through a mail solicitation made by or participated in by the [card issuer](/usc/15/1602.md?p=o) in which the [cardholder](/usc/15/1602.md?p=n) is solicited to enter into such transaction by using the [credit card](/usc/15/1602.md?p=l) issued by the [card issuer](/usc/15/1602.md?p=o).
- (b) **Amount of claims and defenses assertible—** The amount of claims or defenses asserted by the [cardholder](/usc/15/1602.md?p=n) may not exceed the amount of [credit](/usc/15/1602.md?p=f) outstanding with respect to such transaction at the time the [cardholder](/usc/15/1602.md?p=n) first notifies the [card issuer](/usc/15/1602.md?p=o) or the [person](/usc/15/1602.md?p=e) honoring the [credit card](/usc/15/1602.md?p=l) of such claim or defense. For the purpose of determining the amount of [credit](/usc/15/1602.md?p=f) outstanding in the preceding sentence, payments and [credits](/usc/15/1602.md?p=f) to the [cardholder](/usc/15/1602.md?p=n)’s [account](/usc/15/1681a.md?p=r-4) are deemed to have been applied, in the order indicated, to the payment of: (1) late charges in the order of their entry to the [account](/usc/15/1681a.md?p=r-4); (2) finance charges in order of their entry to the [account](/usc/15/1681a.md?p=r-4); and (3) debits to the [account](/usc/15/1681a.md?p=r-4) other than those set forth above, in the order in which each debit entry to the [account](/usc/15/1681a.md?p=r-4) was made.

## Source credit

(Pub. L. 90–321, title I, § 170, as added Pub. L. 93–495, title III, § 306, Oct. 28, 1974, 88 Stat. 1515.)