The following provisions of
Subpart B apply if credit cards are issued and the card issuer and
the seller are the same or related persons; no finance charge is imposed;
consumers are billed in full for each use of the card on a transaction-by-transaction
basis, by means of an invoice or other statement reflecting each use
of the card; and no cumulative account is maintained which reflects
the transactions by each consumer during a period of time, such as
a month. The term “related person” refers to, for example, a franchised
or licensed seller of a creditor’s product or service or a seller
who assigns or sells sales accounts to a creditor or arranges for
credit under a plan that allows the consumer to use the credit only
in transactions with that seller. A seller is not related to the creditor
merely because the seller and the creditor have an agreement authorizing
the seller to honor the creditor’s credit card.
1. Section 226.6(a)(5) or section 226.6(b)(5)(iii).
2. Section 226.6(a)(2)
or section 226.6(b)(3)(ii)(B), as applicable. The disclosure
required by section 226.6(a)(2) or section 226.6(b)(3)(ii)(B) shall
be limited to those charges that are or may be imposed as a result
of the deferral of payment by use of the card, such as late payment
or delinquency charges. A tabular format is not required.
3. Section 226.6(a)(4) or section
226.6(b)(5)(ii).
4. Section 226.7(a)(2) or section 226.7(b)(2), as applicable; section
226.7(a)(9) or section 226.7(b)(9), as applicable. Creditors
may comply by placing the required disclosures on the invoice or statement
sent to the consumer for each transaction.
5. Section 226.9(a). Creditors may comply
by mailing or delivering the statement required by section 226.6(a)(5)
or section 226.6(b)(5)(iii) (see appendix G-3 and G-3(A) to this part)
to each consumer receiving a transaction invoice during a one-month
period chosen by the card issuer or by sending either the statement
prescribed by section 226.6(a)(5) or section 226.6(b)(5)(iii), or
an alternative billing error rights statement substantially similar
to that in appendix G-4 and G-4(A) to this part, with each invoice
sent to a consumer.
6. Section 226.9(c). A tabular format is not required.
7. Section 226.10.
8. Section 226.11(a). This section applies when a card issuer receives a payment or other
credit that exceeds by more than $1 the amount due, as shown on the
transaction invoice. The requirement to credit amounts to an account
may be complied with by other reasonable means, such as by a credit
memorandum. Since no periodic statement is provided, a notice of the
credit balance shall be sent to the consumer within a reasonable period
of time following its occurrence unless a refund of the credit balance
is mailed or delivered to the consumer within seven business days
of its receipt by the card issuer.
9. Section 226.12 including section 226.12(c) and
(d), as applicable. Section 226.12(e) is inapplicable.
10. Section 226.13, as applicable. All references to “periodic statement” shall be read to indicate
the invoice or other statement for the relevant transaction. All actions
with regard to correcting and adjusting a consumer’s account may be
taken by issuing a refund or a new invoice, or by other appropriate
means consistent with the purposes of the section.
11. Section 226.15, as applicable.
