(a) General rule. A creditor shall credit a payment to the consumer’s
account as of the date of receipt, except when a delay in crediting
does not result in a finance or other charge or except as provided
in paragraph (b) of this section.
(b) Specific requirements for payments.
(1) General rule. A creditor may specify reasonable requirements
for payments that enable most consumers to make conforming payments.
(2) Examples of reasonable requirements for payments. Reasonable requirements for making payment may include:
(i) Requiring
that payments be accompanied by the account number or payment stub;
(ii) Setting reasonable
cut-off times for payments to be received by mail, by electronic means,
by telephone, and in person (except as provided in paragraph (b)(3)
of this section), provided that such cut-off times shall be no earlier
than 5 p.m. on the payment due date at the location specified by the
creditor for the receipt of such payments;
(iii) Specifying that only checks or
money orders should be sent by mail;
(iv) Specifying that payment is to be
made in U.S. dollars; or
(v) Specifying one particular address
for receiving payments, such as a post office box.
(3) In-person payments on credit card accounts.
(i) General. Notwithstanding section 1026.10(b), payments on a credit card account
under an open-end (not home-secured) consumer credit plan made in
person at a branch or office of a card issuer that is a financial
institution prior to the close of business of that branch or office
shall be considered received on the date on which the consumer makes
the payment. A card issuer that is a financial institution shall not
impose a cut-off time earlier than the close of business for any such
payments made in person at any branch or office of the card issuer
at which such payments are accepted. Notwithstanding section 1026.10(b)(2)(ii),
a card issuer may impose a cut-off time earlier than 5 p.m. for such
payments, if the close of business of the branch or office is earlier
than 5 p.m.
(ii) Financial institution. For purposes of
paragraph (b)(3) of this section, “financial institution” shall mean
a bank, savings association, or credit union.
(4) Nonconforming payments.
(i) In general. Except as provided in paragraph (b)(4)(ii) of this
section, if a creditor specifies, on or with the periodic statement,
requirements for the consumer to follow in making payments as permitted
under this section 1026.10, but accepts a payment that does not conform
to the requirements, the creditor shall credit the payment within
five days of receipt.
(ii) Payment methods promoted by creditor. If a creditor promotes a method for making payments, such payments
shall be considered conforming payments in accordance with this paragraph
(b) and shall be credited to the consumer’s account as
of the date of receipt, except when a delay in crediting does not
result in a finance or other charge.
(c) Adjustment
of account. If a creditor fails to credit a payment, as required
by paragraphs (a) or (b) of this section, in time to avoid the imposition
of finance or other charges, the creditor shall adjust the consumer’s
account so that the charges imposed are credited to the consumer’s
account during the next billing cycle.
(d) Crediting of payments when creditor does not
receive or accept payments on due date.
(1) General. Except as provided in paragraph (d)(2) of this section, if a creditor
does not receive or accept payments by mail on the due date for payments,
the creditor may generally not treat a payment received the next business
day as late for any purpose. For purposes of this paragraph (d), the
“next business day” means the next day on which the creditor accepts
or receives payments by mail.
(2) Payments
accepted or received other than by mail. If a creditor accepts
or receives payments made on the due date by a method other than mail,
such as electronic or telephone payments, the creditor is not required
to treat a payment made by that method on the next business day as
timely, even if it does not accept mailed payments on the due date.
(e) Limitations
on fees related to method of payment. For credit card accounts
under an open-end (not home-secured) consumer credit plan, a creditor
may not impose a separate fee to allow consumers to make a payment
by any method, such as mail, electronic, or telephone payments, unless
such payment method involves an expedited service by a customer service
representative of the creditor. For purposes of paragraph (e) of this
section, the term “creditor” includes a third party that collects,
receives, or processes payments on behalf of a creditor.
(f) Changes by card issuer. If a card issuer makes a material change in the address for receiving
payments or procedures for handling payments, and such change causes
a material delay in the crediting of a payment to the consumer’s account
during the 60-day period following the date on which such change took
effect, the card issuer may not impose any late fee or finance charge
for a late payment on the credit card account during the 60-day period
following the date on which the change took effect.
