Question of the Week
Friday, November 16, 2018 7:25 AM

Question: If a member over pays on a credit card, what are we required to do?

Answer: Per Reg Z, if a credit balance in excess of $1 is created on a credit account, the credit union is required to:

  1. Credit the amount of the credit balance to the member’s account (post the overage)
  2. Refund any part of the remaining credit balance within seven business days from the receipt of a written request from the member; and
  3. Make a good faith effort to refund to the member by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months. No further action is required if the member's current location is not known to the credit union and cannot be traced through the member's last known address or telephone number.