Credit Card Liability

If you have been the victim of credit card identity theft you may take some comfort in the fact that credit card liability is limited to $50. If you actually report the credit card lost prior to it being used then you cannot be held accountable for any unauthorized charges that occur after that time. However, if the identity thief uses your card before you have reported it missing or stolen then the maximum amount you will be charged is $50. The same rule applies even if the credit card is used at an ATM to withdraw cash.

Beware of telemarketers who call to sell you “loss protection” insurance for your credit cards. These callers may trick you into believing that should your card be lost or stolen that you will be solely responsible for any charges made to it if you do not have the “loss protection”.