The Appellate Division, First Department of the State of New York unanimously reversed the ruling of Justice Charles Ramos of the Supreme Court, New York County and reinstated the class action filed by Wolf Popper LLP on behalf of consumers alleging that First Consumers National Bank deceived them into opening credit card accounts without adequately disclosing the fees. The complaint alleges deceptive acts in violation of New York’s consumer fraud laws, breach of contract, and breach of the duty of good faith and fair dealing. The bank moved to dismiss the complaint, relying on its disclosure statements.

        In an unanimous ruling, the First Department said in Sims, et al. v. First Consumers National Bank, "Here, plaintiffs allege, and should be afforded an opportunity to convince a fact-finder, that an average vendor could not readily locate the disclosures within the material provided..."

        The Court pointed out that the federal Truth in Lending Act, "does not preempt state consumer protection laws completely but requires that consumer disclosures be ‘clearly and conspicuously in writing.’"

        Michele Fried Raphael of Wolf Popper, who argued the appeal for plaintiffs, said the decision was "an excellent ruling for consumers."

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