If a credit card, such as Visa or Mastercard is used without your permission, the extent of your liability is governed by sections 83 and 84 Consumer Credit Act.
Notice of loss or misuse
As soon as you discover that your credit card is missing, report the matter immediately (eg. by phone) to the credit card company.
Once the credit card company has been notified of the loss, you will not be liable for any later misuse of the card. Sometimes a credit card company will require confirmation in writing within 7 days.
Extent of Liability
Subject to the above notice requirements, your liability for misuse will depend on the person responsible for the misuse.
If your credit card was misused by someone who has the card with your permission and who is generally allowed to draw on the account, your liability is unlimited.
Example
Your husband/wife is an additional cardholder on your account. He/she exceeds his/her authority (e.g. by using the card for an unauthorised purchase).
If your credit card was lost or stolen, however, your maximum liability will be £50.
You may have no liability however, to the extent that the credit card has been used to make purchases at a distance (e.g. over the telephone or on the internet). Unless the credit card company can prove that the use of the card was authorised, you will be entitled to be re-credited the sum(s) spent.
Examples
Your credit card is stolen. As soon as you discover it is missing you notify the credit card company.
In the meantime the card has been used to purchase goods over the telephone. However much has been spent, you will be entitled to have the full amount re-credited.
Alternatively, if the card had been used to buy goods from a local department store (say for £250) you will be liable for £50, but no more.
Practical Advice
When you get a new credit card, keep the credit card agreement in a safe place and remember where you have put it.
As soon as you discover that your card has been lost, stolen or otherwise missed, notify the credit card company (eg. by telephone).
Check whether you need to confirm notice in writing within 7 days.
Do not give your credit card to anyone unless you can trust them not to misuse it.
If you decide to stop using a credit card account, do not simply throw away the card: cut it up
Please note : We are not affiliated with any credit card company and do not endorse any individual vendors and we are not responsible for the contents of any third party web sites or products.
