1026.11 - Credit Balances and Acct Termination

Question 1

General Credit Balances

Answer 1

If credit balance over $1 occurs, creditor must credit the account, refund any remaining part within seven BD of receipt of request from customer, make good faith effort to refund by cash, check or credit any part of a credit that has remained for six months.

No further action is required if customer’s previous known address is no longer valid and can’t be traced.

Question 2

Finance Charge Related Account Termination

Answer 2

FI cannot term an account because it has not incurred a finance charge

Question 3

Inactivity Related Account Termination

Answer 3

FIs are not prohibited from terming account if it’s been inactive for three or more consecutive months of no credit being extended AND account has no balance.

Question 4

Deceased AH Estate Policy/Procedures

Answer 4

Except on joint accounts, FI must have reasonable policy/procedures in place that allow estate admin can determine amount of and pay any balance in timely manner (SH=30 days).

Cannot assess fees after admin request.

Must waive/rebate any additional FC if payment is made within 30 days of request.