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:

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

Quizplus · Accepted Answer

According to the Fair Credit Billing Act, Kay's maximum legal liability for the unauthorized charges on her credit cards is $0, as long as she reported the loss or theft of her cards within one business day, which she did. Therefore, she is not accountable for any of the fraudulent charges made on her stolen credit cards.

Kay Had Three Credit Cards in Her Billfold When Her