Cardholders Can Sue Over Fees, Court Says
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A federal appeals court has ruled that consumers can sue banks over alleged “bait-and-switch” credit card plans that promise no annual fees but end up imposing them later.
The ruling by a three-judge 3rd U.S. Circuit Court of Appeals panel in Philadelphia on Friday says cardholders can sue under the Truth in Lending Act.
The decision reverses a ruling by U.S. District Judge Bruce W. Kauffman, who dismissed the lawsuit against Fleet Bank.
The lead plaintiff, Paula Rossman, said she responded to a Fleet solicitation for a credit card with no annual fee, but the company added a $35 annual fee six months later.
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