Garber v. Harris Trust & Savings Bank

432 N.E.2d 1309 (1982)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Ps represent a class of credit cardholders who have credit cards from Ds. Ps represent a class of credit cardholders who have credit cards from Ds. Ps brought this action in chancery against Ds. Ps claim that Ds breached the provisions of its 'cardholder agreement' document by changing the terms on which that D would offer to extend credit and that the alleged changes in the cardholder agreements were void for lack of consideration. Ps sought injunctive relief against the changes, money damages, and other relief. Ds moved to dismiss. All of the Ds made changes to the original credit card agreements. The notices gave Ps the options of discontinuing the use of credit card or continued used of the card would be deemed as acceptance of the proposed change. Ps assert that the agreements are binding contracts and that there was no consideration to support the alleged modifications since a promise to do something which one is already obligated to do, i.e., to extend credit, does not constitute a valid consideration. The court granted the motion to dismiss. Ps appealed.