A borrower overpaid their credit card balance and there has been a $0.02 credit balance for 6 months now. If they only have the credit card and no deposit accounts, must we send a check for the refund? 1026.11(a) addresses when the credit balance exceeds $1, but doesn't seem to address less than $1? I feel I've seen this addressed before in the forums and did a search, but I can't seem to locate those posts. Thank you for any help.

102611(a) Credit balances. When a credit balance in excess of $1 is created on a credit account (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 the consumer), the creditor shall:

(1) Credit the amount of the credit balance to the consumer's account;

(2) Refund any part of the remaining credit balance within seven business days from receipt of a written request from the consumer;

(3) 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 six months. 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.

You are under no obligation to do anything.

Not even send them a periodic statement:

(2) Periodic statements. (i) Statement required. The creditor shall mail or deliver a periodic statement as required by §1026.7 for each billing cycle at the end of which an account has a debit or credit balance of more than $1 or on which a finance charge has been imposed.