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Can you summarize 15 USC 1666i?
Credit Billing > Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses
Short Summary
This provision, found in the United States Code under the Consumer Credit Protection section, pertains to claims and defenses arising from credit card transactions. It applies to card issuers and cardholders who have entered into an open end consumer credit plan. The card issuer is subject to all claims and defenses, except for tort claims, if certain prerequisites are met. These prerequisites include the cardholder making a good faith attempt to resolve the disagreement with the person honoring the credit card, the initial transaction amount exceeding $50, and the transaction occurring in the same state as the cardholder’s mailing address or within 100 miles of such address. However, these limitations on claims and defenses do not apply to transactions involving the card issuer, transactions solicited by the card issuer through mail solicitation, or certain relationships between the person honoring the credit card and the card issuer. The amount of claims or defenses asserted by the cardholder cannot exceed the outstanding credit with respect to the transaction at the time the cardholder notifies the card issuer or the person honoring the credit card. Payments and credits to the cardholder’s account are applied in a specific order to determine the outstanding credit. No specific penalties are mentioned in this provision.
Whom does it apply to?
Card issuers and cardholders
What does it govern?
Claims and defenses arising out of credit card transactions
What are exemptions?
The limitations on claims and defenses do not apply to certain transactions involving the card issuer or transactions solicited by the card issuer through mail solicitation.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
U.S. Federal Government