Brief Fact Summary. The Hylands, (Plaintiffs), brought suit against First USA Bank, (Defendant) after Defendant refused to provide consumer protection for a purchase Plaintiffs made outside of the United States.
Synopsis of Rule of Law. A waiver is a voluntary and intentional relinquishment or abandonment of a known right.
Issue. Whether Plaintiffs have adequately alleged waiver of the geographic limitation by Defendant sufficient to survive a motion to dismiss.
Held. Yes. Plaintiffs have adequately alleged that Defendant voluntarily and intentionally relinquished a known right.
Discussion. The Truth in Lending Act provides that a card issuer who has issued a credit card to a cardholder shall be subject to all claims other than tort claims and defense arising out of any transaction in which the credit card is used a s method of payment or extension of credit. However a card issuer is only liable if the purchase is made within the same state or within 100 miles of the cardholder’s mailing address. Plaintiffs claim that Defendant waived this exception. According to Plaintiffs, Defendant repeatedly agreed to help them even though the charge statement clearly showed that the purchase had been made in Greece.