Chase Bank USA v. McCoy (2010)
- Docket
- 09-329
- Decided
- 2010-01-01
Summary
Question: When a creditor increases the periodic rate on a credit card account in response to cardholder default, but pursuant to a default rate term disclosed in the contract governing the account, does Regulation Z of TILA require the creditor to provide the cardholder with a change-in-terms notice? Conclusion: No. The Supreme Court reversed and remanded the lower court decision in a unanimous opinion by Justice Sonia Sotomayor who held that at the time of the transactions at issue, Regulation Z did not require Chase to provide McCoy with a change-in-terms notice before implementing the agreement term allowing it to raise his interest rate.