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canceled the MasterCard accounts of cardholders who did not pay
the annual membership fee.
Petitioner had the following number of MasterCard accounts
at yearend:
Year Number of MasterCard Accounts
1983 682,143
1984 759,415
1985 853,498
4. MasterCard Cardholder Agreements
As required by Regulation Z (12 C.F.R. sec. 226.9(a)),
petitioner gave a copy of a charge plan customer agreement and
truth in lending disclosure (the cardholder agreement) to
everyone who opened an account. Thereafter, petitioner did not
give a copy of the agreement to each cardholder each year. As
required by Regulation Z (12 C.F.R. sec. 226.9(c), petitioner
notified cardholders when it changed the terms of the agreement.
The cardholder agreement provided, among other things, that:
the annual membership fee was paid “in consideration of” the
issuance of a card and the establishment of a credit limit,
cardholders were required to surrender their cards upon demand,
petitioner could cancel a card at any time, and the annual
membership fee was nonrefundable. For example, petitioner’s
cardholder agreement, effective April 1981, stated in part as
follows:
OTHER CHARGES. * * *
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