Section 22. Whenever a credit balance equal to or in excess of one dollar is created in connection with a consumer credit transaction through (1) transmittal of funds to a creditor in excess of the total balance due on an account, (2) rebates of unearned finance charges or insurance premiums or (3) amounts otherwise owed to or held for the benefit of an obligor, the creditor shall:
(a) credit the amount of the credit balance to the consumer's account;
(b) refund any part of the amount of the remaining credit balance, upon request of the consumer; and
(c) make a good faith effort to refund to the consumer by cash, check or money order any part of the amount of the credit balance remaining in the account for more than six months, within thirty days after the expiration of the six-month period, except that no further action is required in any case in which the consumer's current location is not known by the creditor and cannot be traced through the consumer's last known address or telephone number. Any creditor who does not make such a good faith effort to refund the credit balance, as required hereby, shall pay to the customer interest thereon at the annual percentage rate of eighteen per cent.
In addition, the creditor of any open-end-credit plan shall disclose to the customer, in the periodic statement for the billing cycle at the end of which a credit balance first occurs and is due and owing to the customer, the amount of such credit balance. Unless the credit balance is previously reduced to less than one dollar by refunds or other charges to the account, the creditor shall further disclose, in at least two additional periodic statements for billing cycles within the six-month period following the closing of the billing cycle in which the credit balance first occurs and is due and owing to the customer, any credit balance equal to or in excess of one dollar at the end of such billing cycles.
The creditor of such account shall clearly and conspicuously disclose to the customer in the periodic statement or in a statement accompanying the periodic statement for either the billing cycle in which the credit balance first occurs and is due and owing the customer or the next succeeding billing cycle the following information to the extent applicable:
(a) The amount of the credit balance at the end of the applicable billing cycle; (b) That such credit balance represents money owed to the customer; (c) That the customer has the right to make charges against such credit balance or to obtain a cash refund of such balance upon request; (d) That the creditor will refund, within thirty days after the expiration of the foresaid six-month period, the amount then remaining in such credit balance, if no charge has been made against such credit balance, and a refund has not been requested and the amount of such credit balance is then in excess of one dollar. If the creditor discloses the credit balance more than once, the additional disclosures shall also be made in at least one other periodic statement or in a statement accompanying another periodic statement for a billing cycle within the aforesaid six-month period.
Structure Massachusetts General Laws
Part I - Administration of the Government
Title XX - Public Safety and Good Order
Chapter 140d - Consumer Credit Cost Disclosure
Section 2 - Exempt Transactions
Section 3 - Rules and Regulations
Section 4 - Finance Charge; Determination
Section 5 - Annual Percentage Rate; Determination
Section 6 - Inaccurate Disclosure of Finance Charge or Annual Percentage Rate; Adjustment
Section 7 - Disclosure of Information; Multiple Creditors or Obligors; Estimates
Section 8 - Disclosure of Information; Clear and Conspicuous Statements
Section 9 - Information Rendered Inaccurate
Section 10 - Security Interest in Property Used as Dwelling; Rescission; Liability; Application
Section 11 - Disclosure; Open End Credit Plans; Statement; Contents
Section 12 - Disclosure; Other Than Open-End-Credit Plans; Statement; Contents
Section 14 - Multiple-Page Advertisements; Contents; Open-End-Credit Plan
Section 15 - Advertisements; Other Than Open-End-Credit Plans; Contents
Section 16 - Liability of Owner or Personnel of Advertising Medium
Section 17 - Oral Response to Cost of Credit Inquiry
Section 18 - Model Disclosure Forms and Clauses
Section 19 - Time for Sending Statement; Noncompliance; Finance Charge
Section 22 - Credit Balance Exceeding One Dollar; Periodic Statement Disclosure; Contents
Section 23 - Transfer of Funds Following Default of Debt; Written Notice; Applicability
Section 24 - Guaranty of Obligations of Other Persons; Notice of Additional Obligations
Section 25 - Issuance of Credit Cards
Section 26 - Cardholder Liability for Unauthorized Use
Section 27 - Unauthorized Use of Credit Cards
Section 28 - Liability of Business for Unauthorized Use of Credit Cards
Section 28a - Cardholder Discounts; Surcharges; Finance Charge
Section 28b - Participation in Credit Card Plans; Conditions
Section 29 - Rules and Regulations; Consistency With Federal Fair Credit Billing Act
Section 30 - Inspection of Records
Section 31 - Prohibited Acts; Penalty
Section 32 - Creditor's Failure to Comply With Law; Damages
Section 34 - Unfair Trade Practices; Violations
Section 35 - Limitations on Creditors' Liability and Consumer Rescission Rights