Contract Modification. Ellen and Gabriel Fineman held MasterCards issued by Citibank. Holders of these cards paid an annual 15 fee. The issuance and use of the cards were governed by a retail installment credit agreement, which contained the following statement: We can change this Agreement including the finance charge and the annual percentage rate at any time. The agreement did provide for thirty days' notice of any such changes, and the cardholder had a right to reject the changes in writing and return the credit card. Two months before the expiration of the Finemans' cards, Citibank notified them that it was increasing its annual fee to 20; however, Citibank was also providing its cardholders with extra services and benefits, such as 100,000 common carrier travel insurance. The Finemans did not object in writing, nor did they return the cards. Citibank added 83 cents to the Finemans' next bill, the prorated portion of the increase for the two months remaining on their cards. The Finemans filed suit (a class-action lawsuit on behalf of all cardholders) to recover the increased charges. Among other claims, the Finemans argued that the modification failed because the travel insurance was not adequate consideration for the modification, because they never received any benefits from the insurance, and because its cost to Citibank was negligible. Was there adequate and legally sufficient consideration for Citibank's modification of the annual credit card fee?
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