Milton ordered a fancy telescope from a catalogue- using his bank credit card. When it arrived it seemed quite different from that of the catalogue description. Neither the catalogue company nor the manufacturer would take the telescope back. Milton now wants the chartered bank which issued the credit card to reverse the charges. Does Milton have an legal claim against the bank?
A) No, the bank is a lender to Milton and not an assignee of contracts from sellers.
B) Yes, but who can afford to sue a chartered bank?
C) Yes, the federal Bank Act requires chartered banks to be advocates for consumers in respect to credit card purchases.
D) No, Milton must pursue remedies through the Better Business Bureau
E) Yes, they are the assignee of the seller.

Question

Quizplus · Accepted Answer

Milton does not have a legal claim against the bank because the bank is merely a lender and not an assignee of contracts from sellers. The bank's role is to provide credit, not to mediate disputes between buyers and sellers.

Milton Ordered a Fancy Telescope from a Catalogue- Using His