Liability for Stolen Credit Cards
They can, but only for a very small amount. Under the Fair Credit Billing Act (FCBA), consumers are not liable for the charges made to their credit cards after they report them missing. For any card that is used to make unauthorized charges before it is reported missing, the maximum liability for those unauthorized charges to the consumer is $50. However, the credit card company will usually waive this fee in order to keep the loyalty of their customer. Furthermore, if the thief only has a credit card number and not the physical card itself, the consumer is not liable for any of the unauthorized charges on the account.
For example, on June 1, unbeknownst to you, your Citibank credit card is stolen and $100 is charged at the local grocery store. On June 2, you realize that you don't have it and report it missing. On June 3, the thief charges another $200 at the Signature Room. On June 4, you realize that your Bank of America credit card is missing and report it to the credit card company. On June 5, the thief charges $500 worth of airline tickets to your Bank of American credit card. And on June 6, someone uses your Chase credit card number to pay for a $400 BestBuy.com purchase online. You check your online Chase account on June 9 and realize the unauthorized charge and call Chase right away to report the unauthorized purchase.
In this situation, Citibank may only request that you pay $50. You will not be liable to Bank of America because the unauthorized charges made to that card were made after it was reported missing. You also won't be liable for the unauthorized purchases on your Chase card because even though you reported it after the purchase was made, the thief was not in possession of the physical card and therefore you liability remains at $0.
The most important thing to remember when credit cards go missing is to report them to your credit card company within a reasonable amount of time after you realize that they are missing (usually 30 days).
Published by M. R.
M. R. does freelance writing on a regular basis. View profile
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