Ask Reggi Your Question Now
Can you summarize 15 USC 1643?
Credit Transactions > Liability of holder of credit card
Short Summary
This section of the United States Code governs the liability of the holder of a credit card. It outlines the conditions under which a cardholder may be held liable for unauthorized use of a credit card. The liability is limited to $50, provided that the card is an accepted credit card and the card issuer has given adequate notice to the cardholder of the potential liability. The unauthorized use must occur before the card issuer has been notified of loss, theft, or unauthorized use of the card. The card issuer must also provide a means for the user of the card to be identified as the authorized person. The burden of proof is on the card issuer to show that the use was authorized or that the conditions of liability have been met. This section does not impose liability on the cardholder beyond what is already imposed by other applicable laws or agreements with the card issuer. Except as provided in this section, a cardholder incurs no liability from the unauthorized use of a credit card.
Whom does it apply to?
Cardholders and card issuers
What does it govern?
Liability of holder of credit card
What are exemptions?
Nothing in this section imposes liability upon a cardholder for the unauthorized use of a credit card in excess of his liability for such use under other applicable law or under any agreement with the card issuer.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
U.S. Federal Government