What is the maximum liability on a stolen credit card under the Consumer Credit Protection Act?

The maximum liability for unauthorized use of a stolen credit card under the Consumer Credit Protection Act, specifically the Fair Credit Billing Act, is $50. This means that if your credit card is stolen and used fraudulently, you are only responsible for up to $50 in charges that you did not make. If you report the theft before any unauthorized charges occur, your liability is zero.

This consumer protection establishes a clear limit to ensure that individuals are not unduly burdened by fraudulent transactions, allowing consumers to report issues without the fear of significant financial loss. This provision is designed to encourage cardholders to report lost or stolen cards promptly while providing reassurance that they will not be held accountable for the full extent of the fraud.

The other amounts listed—$500, $100, and $25—do not represent the established limit for consumer liability on stolen credit cards, aligning with the legislative intent to protect consumers from excessive financial risk in instances of fraud.