The maximum liability for a credit card holder whose card is lost or stolen is:
A)$50.
B)$50 if the cardholder notifies the creditor.
C)$0.
D)none of the above

Question

Quizplus · Accepted Answer

According to the Fair Credit Billing Act, a credit card holder's maximum liability for unauthorized charges made after the card is lost or stolen is $50, but only if the cardholder notifies the creditor in a timely manner. If the cardholder reports the loss or theft before any unauthorized charges are made, then the liability is $0. Therefore, option B is correct. Option A is partially correct but incomplete as it doesn't mention the requirement of notifying the creditor. Option C is incorrect as there is a liability of $50 and option D is incorrect as option B is the correct answer.

The Maximum Liability for a Credit Card Holder Whose Card