§1666f. Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts
(a) Cash discounts
With respect to credit 1 card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay by cash, check, or similar means rather than use a credit card.
(b) Finance charge
With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance charge as determined under section 1605 of this title if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously.
(Pub. L. 90–321, title I, §167, as added
Pub. L. 93–495, title III, §306, Oct. 28, 1974, 88 Stat. 1515
; amended
Pub. L. 94–222, §3(c)(1), Feb. 27, 1976, 90 Stat. 197
;
Pub. L. 97–25, title I, §101, July 27, 1981, 95 Stat. 144
.)
Editorial Notes
Amendments
1981-Subsec. (b). Pub. L. 97–25 substituted "With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance charge as determined under section 1605 of this title if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously" for "With respect to any sales transaction, any discount not in excess of 5 per centum offered by the seller for the purpose of inducing payment by cash, check, or other means not involving the use of a credit card shall not constitute a finance charge as determined under section 1605 of this title, if such discount is offered to all prospective buyers and its availability is disclosed to all prospective buyers clearly and conspicuously in accordance with regulations of the Board".
1976-Subsec. (a). Pub. L. 94–222 temporarily designated existing provisions as par. (1) and added par. (2). See Termination Date of 1976 Amendment note below.
Statutory Notes and Related Subsidiaries
Termination Date of 1976 Amendment
Section 3(c)(2) of Pub. L. 94–222, as amended by
Pub. L. 95–630, title XV, §1501, Nov. 10, 1978, 92 Stat. 3713
;
Pub. L. 97–25, title II, §201, July 27, 1981, 95 Stat. 44
, provided that: "The amendments made by paragraph (1) [amending this section] shall cease to be effective on February 27, 1984."
Nullification of Board Rules and Regulations Under Subsection (b) of This Section in Effect on July 26, 1981
Pub. L. 97–25, title I, §103, July 27, 1981, 95 Stat. 144
, provided that: "Any rule or regulation of the Board of Governors of the Federal Reserve System pursuant to section 167(b) of the Truth in Lending Act [subsec. (b) of this section], as such section was in effect on the day before the date of enactment of this Act [July 27, 1981], is null and void."