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Benion v. Bank One, Dayton, N.A., 144 F. 3d 1056 (7th Cir. 1998); Benion v. Bank One, Dayton, N.A., 967 F. Supp. 1031 (N.D. Ill. 1997)

Ruling on a matter of first impression, the Seventh Circuit affirmed the district court’s conclusion in favor of our client, Bank One, that the credit transaction at issue involved an “open-end credit plan” under the Truth-in-Lending Act.  The plaintiffs had used private-label credit cards to purchase retail goods.  In their class-action complaint, the plaintiffs alleged that, because these cards provided only limited credit above what was necessary for the plaintiffs’ initial purchases, the plaintiffs’ credit transactions were close-end and therefore required more extensive disclosures.  VBLH&C successfully argued otherwise.  In particular, VBLH&C argued that, even if the plaintiffs received a very limited credit line in connection with their purchases, they still received a credit line.  Thus, only the open-end disclosures were required.