Cristina receives a new credit card from Seventh National Bank that does not provide a means for a retailer to verify that the holder of the card is in fact authorized to use it.The next day,Cristina discovers that she has lost her card.As soon as she discovers the card is missing,she calls Seventh National to report the loss.Already,$620 worth of unauthorized charges have been made on her credit card.Under the Truth-in-Lending Act,Cristina will:

Question

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Under the Truth-in-Lending Act, if a credit card was lost or stolen and unauthorized charges were made, the cardholder's liability cannot exceed $50. However, if the loss or theft was not reported to the credit card issuer, the cardholder's liability can be up to $500. Since Cristina reported the loss as soon as she discovered it, she will not have to pay any amount of the unauthorized charges.

Cristina Receives a New Credit Card from Seventh National Bank