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U.S. Code as of:
01/19/04
Section 1643. Liability of holder of credit card
(a) Limits on liability
(1) A cardholder shall be liable for the unauthorized use of a
credit card only if -
(A) the card is an accepted credit card;
(B) the liability is not in excess of $50;
(C) the card issuer gives adequate notice to the cardholder of
the potential liability;
(D) the card issuer has provided the cardholder with a
description of a means by which the card issuer may be notified
of loss or theft of the card, which description may be provided
on the face or reverse side of the statement required by section
1637(b) of this title or on a separate notice accompanying such
statement;
(E) the unauthorized use occurs before the card issuer has been
notified that an unauthorized use of the credit card has occurred
or may occur as the result of loss, theft, or otherwise; and
(F) the card issuer has provided a method whereby the user of
such card can be identified as the person authorized to use it.
(2) For purposes of this section, a card issuer has been notified
when such steps as may be reasonably required in the ordinary
course of of business to provide the card issuer with the pertinent
information have been taken, whether or not any particular officer,
employee, or agent of the card issuer does in fact receive such
information.
(b) Burden of proof
In any action by a card issuer to enforce liability for the use
of a credit card, the burden of proof is upon the card issuer to
show that the use was authorized or, if the use was unauthorized,
then the burden of proof is upon the card issuer to show that the
conditions of liability for the unauthorized use of a credit card,
as set forth in subsection (a) of this section, have been met.
(c) Liability imposed by other laws or by agreement with issuer
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.
(d) Exclusiveness of liability
Except as provided in this section, a cardholder incurs no
liability from the unauthorized use of a credit card.
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