Question

Jose loses his credit card at a crowded city park. He notifies his credit card company immediately. Five days later, $4,507 is charged on the card. How much of those charges is Jose liable for?a• $25.00.b• $50.c• 50% of the charges incurred.d• The entire amount.
e• Nothing.

Answer 1

Answer:

e• Nothing.

Explanation:

If your credit card is stolen, federal law establishes a maximum liability of $50 for any purchases made before you report the loss. In this case, we are told that Jose reported the loss immediately, so there should be no time for someone else to make any illegal purchases. The credit card company should not allow any purchases after Jose notified the loss.