Kay had three credit cards in her billfold when her wallet was stolen.She reported the cards missing as soon as she discovered the loss (one day),but the following unauthorized charges were incurred before she reported the stolen cards:

How much is Kay's maximum legal liability for the fraudulent charges on these cards?

Question

Kay had three credit cards in her billfold when her wallet was stolen.She reported the cards missing as soon as she discovered the loss (one day),but the following unauthorized charges were incurred before she reported the stolen cards:
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How much is Kay's maximum legal liability for the fraudulent charges on these cards?
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Quizplus · Accepted Answer

According to the Fair Credit Billing Act, if a credit card holder reports the loss or theft of their card before any fraudulent charges are made, their maximum legal liability for those charges is $0. Therefore, Kay's maximum liability is $0 since she reported the lost cards before any fraudulent charges were made.

Kay Had Three Credit Cards in Her Billfold When Her