Mastercard v. Town of Newport

First Wisconsin National Bank appeals from a judgment for $50 against the Town of Newport. The judgment arises out of purchases exceeding that amount the town clerk charged to a credit card the bank had issued in the town’s name. The issue is whether, as the trial court held, the purchases were an “unauthorized use” of the credit card, within the meaning of the federal Truth in Lending Act, 15 U.S.C. sec. 1602(o), consequently limiting the town’s liability to $50 under 15 U.S.C. sec. 1643(a). We disagree with the trial court’s holding and therefore reverse.

The facts are agreed. In 1977…