Acosta v. Target Corp.

Dist. Ct. did not err in granting defendant’s motion for summary judgment in action alleging that defendant’s mailing of unsolicited general-purpose credit cards to millions of existing holders of defendant’s limited use credit cards violated Truth in Lending Act (TILA) provisions where terms of general purpose credit card were not presented in tabular format in so-called “Shumer Box” required under section 1637(c) of TILA, and where section 1642 of TILA prohibits mailing of unsolicited, ready-to-use credit cards. No violation of section 1642 occurred, since general purpose credit cards were essentially substitutes for defendant’s limited use credit cards, where accounts of limited use credit cards were closed when customers activated general purpose cards. Moreover, no section 1637(c) violation occurred, where defendant could reasonably have viewed general purpose credit cards as changes to customers’ existing accounts that did not require Shumer Box presentation under regulations existing at time of instant mailing.