Cedrick's credit card was stolen,and he did not realize that it was stolen until he received his most recent billing statement.He contacted the credit card company immediately after he read his statement.Fraudulent charges were as follows: $250 for a Blue-ray player,$600 for a new set of tires,$200 cash withdrawal,and $40 in interest charges on the above items.He did not carry credit card insurance.How much is Cedrick's potential maximum liability?
A)$40.00
B)$50.00
C)$850.00
D)$1,050.00
E)$1,090.00

Question

Quizplus · Accepted Answer

Under the Fair Credit Billing Act, if a credit card is stolen and the theft is reported after fraudulent charges have been made, the cardholder's maximum liability is $50. Cedrick is not responsible for more than this amount, regardless of the total fraudulent charges.

Cedrick's Credit Card Was Stolen,and He Did Not Realize That