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New Surveys Cover Refunds, Time-Barred Debt

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New Surveys Cover Refunds, Time-Barred Debt

AFSA’s State Government Affairs (SGA) team published two 50-state surveys last week on de minimis refund exemptions and collection of time-barred debt. 

In some consumer credit transactions, the contract may have an excess balance after being paid in full, such as if a consumer prepays the loan prior to maturity. Reg. Z of the federal Truth in Lending Act does not require creditors to refund excess balances of less than $1.00, referred to as a “de minimis” refund, but some states have their own statutes governing de minimis refunds. The survey provides an overview of state law governing de minimis refunds. 

SGA recently published an updated version of its 50-state survey on the collection of time-barred debt. Prepared for AFSA by Moss & Barnett, the survey provides an overview of state law governing time-barred debt, which is debt that is due past the statute of limitations for collection. The survey has a focus on whether a state allows time-barred debt to be renewed and what methods a creditor may use to renew the debt. 

These surveys can be found with AFSA’s other state surveys and charts in the state resources page on AFSA’s website. 

May 30th, 2022 by