source:
  type: regulation
  id: reg-z-1026.21
  authority: 12 CFR §1026.21 — Treatment of credit balances
  description: 'Regulation Z §1026.21 governs credit balances in excess of $1 in

    closed-end consumer credit accounts (mortgage payoffs, escrow

    refunds, finance-charge rebates). [LENDER] (as creditor) must

    (a) credit the credit balance to the consumer''s account; (b) refund

    any part of the remaining credit balance upon the consumer''s written

    request; and (c) make a good-faith effort to refund any part of the

    credit balance remaining for more than six months by cash, check,

    money order, or credit to a deposit account — except that no

    further action is required if the consumer''s current location is

    not known to [LENDER] and cannot be traced through the consumer''s

    last known address or telephone number. Operative in the mortgage

    context for payoff/postclose overpayment refunds and HELOC payoff

    refunds.

    '
obligations:
- id: reg-z-1026.21-full
  canonical_id: reg-z-1026.21-full
  section: 12 CFR §1026.21 — Treatment of credit ba
  description: When a credit balance in excess of $1 is created in connection with a transaction (through
    transmittal of funds to a creditor in excess of the total balance due on an account, through rebates
    of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for
    the bene…
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.21(a)
    source_class: cfpb-regulation
    source_url: https://www.ecfr.gov/current/title-12/chapter-X/part-1026/section-1026.21
    snapshot_id: 74f44c7e503bbff6
    fetched_at: '2026-05-24T19:34:06Z'
    content_hash: sha256:758482c1743cbf50d71444efaebbc4d0d030d339f7f76dae29874a4292d3b7df
    paragraph_quote: 'When a credit balance in excess of $1 is created in connection with a transaction
      (through transmittal of funds to a creditor in excess of the total balance due on an account, through
      rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to
      or held for the benefit of a consumer), the creditor shall:'
    drafter_attestation: Verbatim subsection of 12 CFR § from Cornell LII snapshot 74f44c7e503bbff6; body
      isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.21-a
  canonical_id: reg-z-1026.21-a
  section: 12 CFR §1026.21 — Treatment of credit ba
  description: '(a): (a) Credit the amount of the credit balance to the consumer ''s account;'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.21(a)
    source_class: cfpb-regulation
    source_url: https://www.ecfr.gov/current/title-12/chapter-X/part-1026/section-1026.21
    snapshot_id: 74f44c7e503bbff6
    fetched_at: '2026-05-24T19:34:06Z'
    content_hash: sha256:758482c1743cbf50d71444efaebbc4d0d030d339f7f76dae29874a4292d3b7df
    paragraph_quote: (a) Credit the amount of the credit balance to the consumer 's account;
    drafter_attestation: Verbatim subsection of 12 CFR § from Cornell LII snapshot 74f44c7e503bbff6; body
      isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.21-b
  canonical_id: reg-z-1026.21-b
  section: 12 CFR §1026.21 — Treatment of credit ba
  description: '(b): (b) Refund any part of the remaining credit balance, upon the written request of
    the consumer ; and'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.21(a)
    source_class: cfpb-regulation
    source_url: https://www.ecfr.gov/current/title-12/chapter-X/part-1026/section-1026.21
    snapshot_id: 74f44c7e503bbff6
    fetched_at: '2026-05-24T19:34:06Z'
    content_hash: sha256:758482c1743cbf50d71444efaebbc4d0d030d339f7f76dae29874a4292d3b7df
    paragraph_quote: (b) Refund any part of the remaining credit balance, upon the written request of
      the consumer ; and
    drafter_attestation: Verbatim subsection of 12 CFR § from Cornell LII snapshot 74f44c7e503bbff6; body
      isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-z-1026.21-c
  canonical_id: reg-z-1026.21-c
  section: 12 CFR §1026.21 — Treatment of credit ba
  description: '(c): (c) Make a good faith effort to refund to the consumer 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 6 months, except that no further action is required if the consumer ''s current location
    is not…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1026.21(a)
    source_class: cfpb-regulation
    source_url: https://www.ecfr.gov/current/title-12/chapter-X/part-1026/section-1026.21
    snapshot_id: 74f44c7e503bbff6
    fetched_at: '2026-05-24T19:34:06Z'
    content_hash: sha256:758482c1743cbf50d71444efaebbc4d0d030d339f7f76dae29874a4292d3b7df
    paragraph_quote: (c) Make a good faith effort to refund to the consumer 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 6 months, except that no further action is required if the consumer 's current
      location is not known to the creditor and cannot be traced through the consumer 's last known address
      or telephone number. CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel
      Table of Authorities Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR § from Cornell LII snapshot 74f44c7e503bbff6; body
      isolated between nav and notes; substring-verified.
  judgment: false
