If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to federal law?
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A. B. C. D.B
Under the Fair Credit Billing Act (FCBA), if your credit card is stolen and you notify the card issuer promptly, you can be held liable for a maximum of $50 for unauthorized charges.
The FCBA limits your liability for unauthorized charges on a credit card to a maximum of $50. However, even this amount is not guaranteed as the law allows the credit card issuer to hold you liable for up to $50 of unauthorized charges. It's important to note that this liability limit only applies if you report the loss or theft of your credit card to the issuer promptly. If you don't report the loss or theft of your card in a timely manner, you could be held liable for up to $500 of unauthorized charges.
It's important to report a lost or stolen credit card as soon as possible to minimize your liability. Most credit card issuers have a toll-free number that you can call to report a lost or stolen card. You should also review your credit card statement carefully to identify any unauthorized charges and report them promptly to the issuer.