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15 U.S.C. § 1643 — Liability of holder of credit card
Federal law — U.S. Code and appendices · legal_authorities
**(a) Limits on liability**
(1) A cardholder shall be liable for the unauthorized use of a credit card only if—
(A) the card is an accepted credit card;
(B) the liability is not in excess of $50;
(C) the card issuer gives adequate notice to the cardholder of the potential liability;
(D) the card issuer has provided the cardholder with a description of a means by which the card issuer may be notified of loss or theft of the card, which description may be provided on the face or reverse side of the statement required by [section 1637(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1637/b&num=0&edition=prelim) or on a separate notice accompanying such statement;
(E) the unauthorized use occurs before the card issuer has been notified that an unauthorized use of the credit card has occurred or may occur as the result of loss, theft, or otherwise; and
(F) the card issuer has provided a method whereby the user of such card can be identified as the person authorized to use it.
(2) For purposes of this section, a card issuer has been notified when such steps as may be reasonably required in the ordinary course of business to provide the card issuer with the pertinent information have been taken, whether or not any particular officer, employee, or agent of the card issuer does in fact receive such information.
**(b) Burden of proof** In any action by a card issuer to enforce liability for the use of a credit card, the burden of proof is upon the card issuer to show that the use was authorized or, if the use was unauthorized, then the burden of proof is upon the card issuer to show that the conditions of liability for the unauthorized use of a credit card, as set forth in subsection (a), have been met.
**(c) Liab
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Stable record: federal_law:legal_authorities:record_usc_665db3f197b013c11ec21055
Source file: Laws/federal/codes/united-states-code/title-15/section-1643-liability-of-holder-of-credit-card--3b2bd732d3.md
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Passage SHA-256: 08dd337185b365ba664c695e7ed8f9d3c10e381920f0805882ba1c0fc8b78dcf
Source location: Title 15, Chapter 41, § 1643; chapter-041-consumer-credit-protection.md
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**(a) Limits on liability**
(1) A cardholder shall be liable for the unauthorized use of a credit card only if—
(A) the card is an accepted credit card;
(B) the liability is not in excess of $50;
(C) the card issuer gives adequate notice to the cardholder of the potential liability;
(D) the card issuer has provided the cardholder with a description of a means by which the card issuer may be notified of loss or theft of the card, which description may be provided on the face or reverse side of the statement required by [section 1637(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1637/b&num=0&edition=prelim) or on a separate notice accompanying such statement;
(E) the unauthorized use occurs before the card issuer has been notified that an unauthorized use of the credit card has occurred or may occur as the result of loss, theft, or otherwise; and
(F) the card issuer has provided a method whereby the user of such card can be identified as the person authorized to use it.
(2) For purposes of this section, a card issuer has been notified when such steps as may be reasonably required in the ordinary course of business to provide the card issuer with the pertinent information have been taken, whether or not any particular officer, employee, or agent of the card issuer does in fact receive such information.
**(b) Burden of proof** In any action by a card issuer to enforce liability for the use of a credit card, the burden of proof is upon the card issuer to show that the use was authorized or, if the use was unauthorized, then the burden of proof is upon the card issuer to show that the conditions of liability for the unauthorized use of a credit card, as set forth in subsection (a), have been met.
**(c) Liability imposed by other laws or by agreement with issuer** Nothing in this section imposes liability upon a cardholder for the unauthorized use of a credit card in excess of his liability for such use under other applicable law or under any agreement with the card issuer.
**(d) Exclusiveness of liability** Except as provided in this section, a cardholder incurs no liability from the unauthorized use of a credit card.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter.
**(b) Bureau.—** The term “Bureau” means the Bureau of Consumer Financial Protection.
**(c)** The term “Board” refers to the Board of Governors of the Federal Reserve System.
**(d)** The term “organization” means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.
**(e)** The term “person” means a natural person or an organization.
**(f)** The term “credit” means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.
**(g)** The term “creditor” refers only to a person who both (1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under part D of this subchapter and sections 1637(a)(5), 1637(a)(6), 1637(a)(7), 1637(b)(1), 1637(b)(2), 1637(b)(3), 1637(b)(8), and 1637(b)(10) of this title, the term “creditor” shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1602
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Federal law — U.S. Code and appendices · legal_authorities
The exemption provided by [section 1603(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1603/1&num=0&edition=prelim) does not apply to the provisions of sections 1642, 1643, and 1644 of this title, except that a card issuer and a business or other organization which provides credit cards issued by the same card issuer to ten or more of its employees may by contract agree as to liability of the business or other organization with respect to unauthorized use of such credit cards without regard to the provisions of [section 1643 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1643&num=0&edition=prelim), but in no case may such business or other organization or card issuer impose liability upon any employee with respect to unauthorized use of such a credit card except in accordance with and subject to the limitations of [section 1643 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1643&num=0&edition=prelim).
Source: Supplied U.S. Code snapshot — release unconfirmed · 15 U.S.C. § 1645
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Federal law — U.S. Code and appendices · legal_authorities
Page 1527
TITLE 15—COMMERCE AND TRADE
§ 1643
(f) Treatment of servicer
(1) In general
A servicer of a consumer obligation arising
from a consumer credit transaction shall not
be treated as an assignee of such obligation for
purposes of this section unless the servicer is
or was the owner of the obligation.
(2) Servicer not treated as owner on basis of
assignment for administrative convenience
A servicer of a consumer obligation arising
from a consumer credit transaction shall not
be treated as the owner of the obligation for
purposes of this section on the basis of an as-
signment of the obligation from the creditor
or another assignee to the servicer solely for
the administrative convenience of the servicer
in servicing the obligation. Upon written re-
quest by the obligor, the servicer shall provide
the obligor, to the best knowledge of the
servicer, with the name, address, and tele-
phone number of the owner of the obligation
or the master servicer of the obligation.
(3) ‘‘Servicer’’ defined
For purposes of this subsection, the term
‘‘servicer’’ has the same meaning as in section
2605(i)(2) of title 12.
(4) Applicability
This subsection shall apply to all consumer
credit
transactions
in
existence
or
con-
summated on or after September 30, 1995.
(g) Notice of new creditor
(1) In general
In addition to other disclosures required by
this subchapter, not later than 30 days after
the date on which a mortgage loan is sold or
otherwise transferred or assigned to a third
party, the creditor that is the new owner or
assignee of the debt shall notify the borrower
in writing of such transfer, including—
(A) the identity, address, telephone num-
ber of the new creditor;
(B) the date of transfer;
(C) how to reach an agent or party having
Source: Supplied 2024 U.S. Code historical extraction · 15 U.S.C. § 1643
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