Household Credit Services, Inc. and Mbna America Bank, N. A. v. Sharon R. Pfennig (541 U.S. 232)
U.S. Supreme Court · decided April 21, 2004 · Supreme Court Database (Spaeth)
- Citation
- 541 U.S. 232 · 124 S. Ct. 1741
- Decided
- April 21, 2004
- Term
- October Term 2003
- Vote
- 9–0
- Majority author
- Justice Thomas
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Justice Thomas delivered the opinion of the Court. Congress enacted the Truth in Lending Act (TILA), 82 Stat. 146, in order to promote the “informed use of credit” by consumers. 15 U. S. C. § 1601(a). To that end, TILA’s disclosure provisions seek to ensure “meaningful disclosure of credit terms.” Ibid. Further, Congress delegated expansive authority to the Federal Reserve Board (Board) to enact appropriate regulations to advance this purpose. § 1604(a). We granted certiorari, 539 U. S. 957 (2003), to decide whether the Board’s Regulation Z, which specifically excludes fees imposed for exceeding a credit limit (over-limit fees) from the definition of “finance charge,” is an unreasonable interpretation of § 1605. We conclude that it is not, and, accordingly, we reverse the judgment of the Court of Appeals for the Sixth Circuit. I Respondent, Sharon Pfennig, holds a credit card initially issued by petitioner Household Credit Services, Inc. (Household), but in which petitioner MBNA America Bank, N. A., now holds an interest through the acquisition of Household’s credit card portfolio. Although the terms of respondent’s credit card agreement set respondent’s credit limit at $2,000, respondent was able to make charges exceeding that limit, subject to a $29 “over-limit fee” for each month in which her balance exceeded $2,000. TILA regulates, inter alia, the substance and form of…
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