If your credit card is stolen and the thief runs up a total debt of $1000, what is the maximum amount that you can be forced to pay according to federal law if you notify the card issuer as soon as you discover it missing?

If your credit card is stolen and the thief runs up a total debt of $1000, what is the maximum amount that you can be forced to pay according to federal law if you notify the card issuer as soon as you discover it missing?

• A. $0
• B. $50
• C. $100
• D. $500

Answer: (B)

Liability for unauthorized credit card charges is limited by federal law. Under the Fair Credit Billing Act, if you report a stolen card promptly, your liability for unauthorized charges is capped at fifty dollars. Since you notify the issuer as soon as you discover the loss, you wouldn’t be responsible for the full thousand dollars—at most fifty dollars. Delaying beyond the allowed window could raise your liability, but prompt reporting keeps it limited to fifty dollars. So the maximum you could be forced to pay is fifty dollars.

Liability for unauthorized credit card charges is limited by federal law. Under the Fair Credit Billing Act, if you report a stolen card promptly, your liability for unauthorized charges is capped at fifty dollars. Since you notify the issuer as soon as you discover the loss, you wouldn’t be responsible for the full thousand dollars—at most fifty dollars. Delaying beyond the allowed window could raise your liability, but prompt reporting keeps it limited to fifty dollars. So the maximum you could be forced to pay is fifty dollars.