Skip NavigationSmall Claims Court: Consumer and Substantive Laws


§8.07 Song-Beverly Credit Card Act—Unauthorized Use of Card

Lesson 8:
Credit Cards

A cardholder is liable for unauthorized use of a credit card if all of the following conditions are met [CC §1747.10]:

  • The credit card is one that the cardholder requested or applied for and received; or signed, used, or authorized another person to use; or was issued in renewal of, or in substitution for, an accepted credit card.
  • The liability does not exceed $50.
  • The card issuer gave the cardholder adequate notice of the potential liability.
  • The card issuer gave the cardholder a description of the means by which the issuer may be notified of the card’s loss or theft.
  • The unauthorized use occurs before the holder notifies the issuer that unauthorized use has occurred or may occur.
  • The issuer provided a method by which the user can be identified as a person authorized to use the card.
    back        Back         page 97 of 100         Next        next