(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 226.10(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 226.10(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 226.10, 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.
