Rossman v. Fleet Bank (R.I.) National Association

Paula Rossman (plaintiff) received an invitation from Fleet Bank (R.I.) National Association (Fleet) (defendant) to apply for a credit card with no annual fee. The invitation, which contained disclosures required by the Truth in Lending Act, also explained that Fleet reserved the right to change the terms of the credit card at any time. Rossman responded to the invitation and obtained a credit card from Fleet. The credit card was sent with a cardholder agreement, which explained that Rossman would not be charged an annual fee to use the card, but also stated that Fleet had the right to change the terms of the agreement at any time. A few months after Rossman received the credit card, Fleet notified Rossman that it would begin charging her an annual fee to use the card. Rossman filed a lawsuit against Fleet in federal district court, alleging that Fleet had violated the Truth in Lending Act by engaging in bait-and-switch advertising. Rossman argued that Fleet had convinced her to sign up for a credit card by advertising that the card had no annual fee while intending to change the terms of the card after she received it. Fleet moved to dismiss Rossman’s claim, arguing that it had appropriately disclosed the terms of the credit card because, at the time of the disclosure, it did not charge Rossman an annual fee to use the card. The district court dismissed Rossman’s claim, holding that she failed to state a claim on which relief could be granted. Rossman appealed.