Hyland v. First USA Bank

While vacationing in Greece, the Hylands (plaintiffs) bought an expensive rug from a Greek shop owner using a First USA Bank (First USA) (defendant) credit card, relying on the seller's express (and later revealed to be false) warranties that the rug was an authentic antique made of silk and cotton; when the Hylands tried to return the rug to Greece per First USA's instructions, Greek customs assessed a tax the Hylands refused to pay, and the rug was seized. Despite repeatedly promising to help resolve the matter while knowing the transaction occurred in Greece, First USA ultimately denied liability under TILA §170(a)(3), which exempts a card issuer from liability for transactions occurring outside the same state as, or within 100 miles of, the cardholder's mailing address; the Hylands argued First USA's conduct waived that geographical-limit defense.