## Facts

- Malik M. Hasan used credit cards issued by Chase Bank USA, N.A. and American Express Centurion Bank to buy large quantities of wine from a merchant for future delivery.
- The merchant delivered only part of the wine and later entered bankruptcy.
- At bankruptcy, Hasan alleged he had paid $689,176.92 on the Chase card and $379,153.72 on the AmEx card for wine never delivered.
- Hasan sought credits from both issuers under the Fair Credit Billing Act (FCBA), 15 U.S.C. § 1666i, asserting claims and defenses arising from the merchant’s nonperformance.
- Chase credited $100,136.88; AmEx provided no credit.
- Hasan alleged he had already paid both card accounts in full when he sued and sought the remaining amounts as affirmative recoveries.
- The district courts dismissed both complaints under Rule 12(b)(6); the appeals were consolidated.

## Issues

1. Whether 15 U.S.C. § 1666i permits a cardholder who has fully paid the credit-card balance to assert against the card issuer claims and defenses arising from the underlying transaction to obtain a refund of previously paid charges.

## Decision

- The Tenth Circuit affirmed both dismissals after de novo review.
- The court held that § 1666i does not apply once the cardholder has fully paid the relevant credit-card account balance.
- Because Hasan alleged the accounts were paid in full, he failed to state a claim under § 1666i against either Chase or AmEx.

## Legal Principles

- FCBA § 1666i is tied to disputes involving an existing, unpaid balance; it allows a cardholder to assert transaction-based claims and defenses against an issuer in connection with amounts the issuer seeks to collect.
- Section 1666i does not create a standalone federal right to affirmative refunds for charges already paid.
- Statutory interpretation must consider the FCBA’s structure and dispute-resolution framework, which is oriented toward billing statements and ongoing payment obligations rather than post-payment restitution.

## Conclusion

The court ruled that § 1666i provides a limited, balance-based mechanism for asserting transaction disputes against a card issuer and cannot be used to recover money after the consumer has fully paid the credit-card account.


Hasan v. Chase Bank USA, N.A., 880 F.3d 1217 (10th Cir. 2018)