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The So-Called $50.00 Rule; 15 USC 1643

Posted: Thu Mar 09, 2006 6:40 pm
by David A. Szwak
There is no liability for unauthorized use of a credit card, except where card is an "accepted credit card" then liability is not in excess of $50.00 and $50.00 is due only when: (1) the issuer provides the cardholder with adequate notice of the limited liability, (2) the issuer provides the cardholder with a description of means by which the issuer may be notified of the loss or theft of the activated card, (3) unauthorized use occurs before the card issuer has been notified that cardholder no longer possesses the card or template, and (4) card issuer provided a method whereby the user of such card can be identified as a person authorized to use it. 15 U.S.C. 1643(a)(1); Fifth Third Bank/Visa v. Gilbert, 478 N.E.2d 1324 (Ohio App. 1984).

The lender can NEVER meet its burden under this Rule and CANNOT collect the monies from you EVER.