Lyons v. PNC Bank

In 2019 and 2020, PNC Bank withdrew approximately $3,000 from William Lyons’s deposit accounts, without his consent, to “offset” debt that it claimed he owed on a home equity line of credit (HELOC). Mr. Lyons then sued PNC, arguing that the bank’s action violated a provision of the Truth in Lending Act (TILA). That provision,15 U.S.C. § 1666h(a), bars banks from “offset[ting] a cardholder’s indebtedness arising in connection with a consumer credit transaction under the relevant credit card plan against funds of the cardholder held on deposit with the card issuer” without prior written authorization.

A federal district court in Maryland granted PNC’s motion to dismiss Mr. Lyons’s TILA claim, holding that the TILA provision did not apply. In August 2024, a panel of the Fourth Circuit reversed, holding that the term “credit card plan” refers to any “plan in which a consumer accesses credit using a credit card” and that, on its face, Mr. Lyons’ credit-card-connected HELOC fell within the statutory requirement.

PNC petitioned for rehearing. Representing Mr. Lyons in responding to the petition, we explained that the panel’s interpretation of the statute is consistent with its plain text and relevant canons of statutory construction, and that policy reasons did not justify granting rehearing. In November 2024, the Fourth Circuit denied the petition for rehearing.