Credit card debt is a common issue that many Americans face, and it has been the subject of several cases that have made it to the United States Supreme Court. Here are four notable cases that have dealt with various aspects of credit card debt:

1. Marquette National Bank of Minneapolis v. First of Omaha Service Corp. (1978)

In this case, the Supreme Court considered whether a national bank could charge interest rates that exceeded the limits set by the state where the borrower lived. Marquette National Bank of Minneapolis issued credit cards to Nebraska residents with interest rates that exceeded the state’s usury limit. The Court ultimately held that national banks could charge interest rates that complied with the laws of the state where the bank was located, regardless of where the borrower lived.

This decision had significant implications for the credit card industry, as it allowed national banks to charge higher interest rates than some states permitted. It also led to the growth of the credit card industry and the creation of credit card issuers that operated nationally.

2. Smiley v. Citibank (South Dakota) N.A. (1996)

In Smiley v. Citibank, the Supreme Court considered whether a credit card issuer could raise the interest rate on a credit card account without providing advance notice to the cardholder. Citibank had raised the interest rate on Smiley’s account from 9.9% to 18% without providing advance notice. The Court held that the Truth in Lending Act (TILA) did not require advance notice for interest rate increases, as long as the cardholder was given notice before the increase took effect.

This decision had significant implications for credit card holders, as it meant that credit card issuers could raise interest rates without providing advance notice. However, it also highlighted the importance of reading the terms and conditions of credit card agreements and understanding the rights and responsibilities of cardholders.

3. Citizens Bank of Maryland v. Strumpf (1995)

In Citizens Bank of Maryland v. Strumpf, the Supreme Court considered whether a bank could place a hold on a debtor’s account to secure payment of a credit card debt. Strumpf had a credit card debt with Citizens Bank of Maryland and discovered that the bank had placed a hold on his account to secure payment of the debt. Strumpf sued the bank, arguing that the hold was unlawful.

The Court ultimately ruled in favor of the bank, holding that a bank may place a hold on a debtor’s account to secure payment of a debt, provided that the hold does not exceed the amount owed on the debt. This decision had significant implications for debtors, as it meant that banks could place holds on accounts to secure payment of debts.

4. Midland Funding, LLC v. Johnson (2017)

In Midland Funding, LLC v. Johnson, the Supreme Court considered whether a debt collector could file a proof of claim for a time-barred debt in a bankruptcy case. Midland Funding, LLC purchased Johnson’s time-barred credit card debt and filed a proof of claim for the full amount in Johnson’s bankruptcy case. Johnson objected to the claim, arguing that it was time-barred.

The Court ultimately ruled in favor of Midland Funding, LLC, holding that the filing of a proof of claim for a time-barred debt does not violate the Fair Debt Collection Practices Act (FDCPA). This decision had significant implications for debtors, as it meant that debt collectors could continue to file proof of claims for time-barred debts in bankruptcy cases.

These four cases highlight the complex legal issues that can arise in the context of credit card debt. They also underscore the importance of understanding the rights and responsibilities of credit card holders and the potential consequences of credit card debt. If you are struggling with credit card debt, it is important.