15-U.S.C.-1666I
§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
Pathway
Title 15 > Chapter 41 > Subchapter I > Part D > Section 1666i
Details
- Reference: Section 1666i
- Legend: §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
- USCode Year: 2013
Provision Content
(a) Claims and defenses assertible
Subject to the limitation contained in subsection (b) of this section, a card issuer who has issued a credit card to a cardholder pursuant to an open end consumer credit plan shall be subject to all claims (other than tort claims) and defenses arising out of any transaction in which the credit card is used as a method of payment or extension of credit 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 honoring the credit card; (2) the amount of the initial transaction exceeds $50; and (3) the place where the initial transaction occurred was in the same State as the mailing address previously provided by the cardholder or was within 100 miles from such address, except that the limitations set forth in clauses (2) and (3) with respect to an obligors right to assert claims and defenses against a card issuer shall not be applicable to any transaction in which the person honoring the credit card (A) is the same person as the card issuer, (B) is controlled by the card issuer, (C) is under direct or indirect common control with the card issuer, (D) is a franchised dealer in the card issuers 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 in which the cardholder is solicited to enter into such transaction by using the credit card issued by the card issuer.
(b) Amount of claims and defenses assertible
The amount of claims or defenses asserted by the cardholder may not exceed the amount of credit outstanding with respect to such transaction at the time the cardholder first notifies the card issuer or the person honoring the credit card of such claim or defense. For the purpose of determining the amount of credit outstanding in the preceding sentence, payments and credits to the cardholders account 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; (2) finance charges in order of their entry to the account; and (3) debits to the account other than those set forth above, in the order in which each debit entry to the account was made.
(Pub. L. 90–321, title I, §170, as added Pub. L. 93–495, title III, §306, Oct. 28, 1974, 88 Stat. 1515.)
U.S. Encyclopedia of Law Coverage
15-U.S.C.-1666I in the Legal Encyclopedia: Trade Law
In this entry about 15-U.S.C.-1666I, find legal reference material, bibliographies and premiere content related to trade law in the American Encyclopedia of Law, presenting a comprehensive view of the United States trade law-specific issues, written by authorities in the field.
15-U.S.C.-1665E in the Legal Encyclopedia: Consumer Credit Protection
In this entry about 15-U.S.C.-1665E, find legal reference material, bibliographies and premiere content related to consumer credit protection in the American Encyclopedia of Law, presenting a comprehensive view of the United States consumer credit protection-specific issues, written by authorities in the field.
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