Judge Paul Crotty
Zevon holds a Macys credit card from Department Stores National Bank (DSNB). Its October 2011 statement included a short-form billing notice omitting two sections of advisory materials included in the model short-form notice provided in Regulation Z promulgated by the Consumer Financial Protection Bureau. The court denied dismissal of Zevon’s 2012 putative class suit alleging DSNB’s violation of the Truth in Lending Act (TILA) by omitting the full text of Regulation Z’s model billing rights notice in monthly statements to Macys credit card holders. Discussing Rubenstein v. Dept. Stores Nat’l Bank and distinguishing Schnall v. HSBC Bank Nevada NA, the court held that 12 CFR §1026.9, authorizing short-form notices, was promulgated under 15 USC §1637(a)(7). Because §1637(a) is an enumerated provision under §1640(a), Zevon is entitled to statutory damages if she shows DSNB violated 12 CFR §1026.9(a). However, the court struck Zevon’s request for $1 million in statutory damages. Discussing the legislative history of the Dodd-Frank Act—through which Congress increased the ceiling for statutory damages in TILA class actions from $500,000 to $1 million—the court held that the increase was effective as of Jan. 21, 2013—after Zevon brought suit.
