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Credit Balance Refund

Question: 
If a borrower pays off a loan and has a credit balance of $3 but does not have a deposit account with the bank, must we refund the $3?
Answer: 

Yes. You should make good faith effort to refund any part of the credit balance remaining in the account for more than six months. The refund can be by cash, check or money order; or credit to a deposit account of the consumer.

No further action is required if the consumer's current location is not known and cannot be traced through the consumer's last known address or telephone number.

First published on 09/03/2012

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