(a) Limitations on imposing finance charges as a result of the loss of
a grace period.
(1) General rule. Except as provided in paragraph (b) of this section, a card issuer
must not impose finance charges as a result of the loss of a grace
period on a credit card account under an open-end (not home-secured)
consumer credit plan if those finance charges are based on:
(i) Balances
for days in billing cycles that precede the most recent billing cycle;
or
(ii) Any portion
of a balance subject to a grace period that was repaid prior to the
expiration of the grace period.
(2) Definition
of grace period. For purposes of paragraph (a)(1) of this section,
“grace period” has the same meaning as in section 226.5(b)(2)(ii)(B)(3).
(b) Exceptions. Paragraph (a) of this section does not apply to:
(1) Adjustments to finance charges as a
result of the resolution of a dispute under section 226.12 or Section
226.13; or
(2) Adjustments
to finance charges as a result of the return of a payment.
