# 12 C.F.R. § 1026.54 (2026): Limitations on the imposition of finance charges

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_54

## Section

- **Citation:** 12 C.F.R. § 1026.54 (2026)
- **Heading:** Limitations on the imposition of finance charges
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 12 CFR: Banks and Banking / Chapter X: CONSUMER FINANCIAL PROTECTION BUREAU / Part 1026: TRUTH IN LENDING (REGULATION Z) / Subpart G: Special Rules Applicable to Credit Card Accounts and Open-End Credit Offered to College Students / § 1026.54: § 1026.54   Limitations on the imposition of finance charges.

## Text

(a)
Limitations on imposing finance charges as a result of the loss of a grace period
—(1)
General rule.
Except as provided in paragraph (b) of this section, a card issuer must not impose finance charges as a result of the loss of a grace period on a credit card account under an open-end (not home-secured) consumer credit plan if those finance charges are based on:
(i) Balances for days in billing cycles that precede the most recent billing cycle; or
(ii) Any portion of a balance subject to a grace period that was repaid prior to the expiration of the grace period.
(2)
Definition of grace period.
For purposes of paragraph (a)(1) of this section, “grace period” has the same meaning as in § 1026.5(b)(2)(ii)(B)(
3
).
(b)
Exceptions.
Paragraph (a) of this section does not apply to:
(1) Adjustments to finance charges as a result of the resolution of a dispute under § 1026.12 or § 1026.13; or
(2) Adjustments to finance charges as a result of the return of a payment.

## Nearby sections

- [12 C.F.R. § 1026.51 (2026) § 1026.51   Ability to Pay.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_51.md)
- [12 C.F.R. § 1026.52 (2026) § 1026.52   Limitations on fees.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_52.md)
- [12 C.F.R. § 1026.53 (2026) § 1026.53   Allocation of payments.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_53.md)
- [12 C.F.R. § 1026.54 (2026) § 1026.54   Limitations on the imposition of finance charges.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_54.md)
- [12 C.F.R. § 1026.55 (2026) § 1026.55   Limitations on increasing annual percentage rates, fees, and charges.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_55.md)
- [12 C.F.R. § 1026.56 (2026) § 1026.56   Requirements for over-the-limit transactions.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_56.md)
- [12 C.F.R. § 1026.57 (2026) § 1026.57   Reporting and marketing rules for college student open-end credit.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_57.md)
- [12 C.F.R. § 1026.58 (2026) § 1026.58   Internet posting of credit card agreements.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_58.md)
- [12 C.F.R. § 1026.59 (2026) § 1026.59   Reevaluation of rate increases.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_59.md)
- [12 C.F.R. § 1026.60 (2026) § 1026.60   Credit and charge card applications and solicitations.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_60.md)
- [12 C.F.R. § 1026.61 (2026) § 1026.61   Hybrid prepaid-credit cards.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_61.md)
- [12 C.F.R. § 1026.62 (2026) § 1026.62   Overdraft credit.](https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_62.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T12_P1026_S1026_54. Check the current official text before relying on it. Not legal advice.