971 F. Supp. 2d 298
E.D.N.Y2013Background
- Plaintiff Cheryl Follman applied for and received a Victoria’s Secret credit card issued by World Financial Network N.A.; she received initial written disclosures with the card and activated it on April 6, 2009.
- Plaintiff made a single purchase on April 28, 2009, paid the balance in full, and never incurred finance charges.
- Plaintiff sued more than one year after the alleged disclosure date (filed April 28, 2010), alleging that the issuer’s initial disclosures (15 U.S.C. § 1637(a)) omitted required information about how an APR increase could affect minimum payments.
- Defendant moved for summary judgment on timeliness grounds; class discovery was deferred pending resolution of the individual claim.
- The court assumed for Plaintiff’s benefit that disclosures were given no later than April 6, 2009, and treated the facts as undisputed for summary judgment purposes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the one‑year TILA statute of limitations (15 U.S.C. § 1640(e)) begin for an alleged omission in § 1637(a) disclosures for open‑end credit? | Limitations should run only after the first credit "transaction," so a consumer can delay accrual by not using the card. | Limitations run from the date the (allegedly deficient) disclosures were made/provided to the consumer. | Held: Limitations began when disclosures were made (assumed April 6, 2009); suit filed >1 year later is untimely. |
Key Cases Cited
- Burt Rigid Box, Inc. v. Travelers Prop. Cas. Corp., 302 F.3d 83 (2d Cir. 2002) (summary judgment standard)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment burden allocation)
- Anderson v. Liberty Lobby, 477 U.S. 242 (1986) (standard for genuine issue of material fact)
- Beach v. Ocwen Fed. Bank, 523 U.S. 410 (1998) (purpose of TILA)
- Goldman v. First Nat’l Bank of Chicago, 532 F.2d 10 (7th Cir. 1976) (distinguishing omissions from inaccurate disclosures; limitations may run from first finance charge when accuracy is revealed)
- Credit Suisse Sec. (USA) LLC v. Simmonds, 132 S. Ct. 1414 (2012) (statutes of limitation protect against stale claims)