15 U.S.C. § 1644 — Fraudulent use of credit cards; penalties

Page 1528 TITLE 15—COMMERCE AND TRADE § 1644 may occur as the result of loss, theft, or other- wise; 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 rea- sonably required in the ordinary course of busi- ness to provide the card issuer with the perti- nent information have been taken, whether or not any particular officer, employee, or agent of the card issuer does in fact receive such infor- mation. (b) Burden of proof In any action by a card issuer to enforce li- ability 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 unauthor- ized, 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 agree- ment 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 card- holder incurs no liability from the unauthorized use of a credit card. (Pub. L. 90–321, title I, § 133, as added Pub. L. 91–508, title V, § 502(a), Oct. 26, 1970, 84 Stat. 1126; amended Pub. L. 96–221, title VI, § 617, Mar. 31, 1980, 94 Stat. 182.) Editorial Notes AMENDMENTS 1980—Subsec. (a). Pub. L. 96–221 revised existing pro- visions into pars. (1) and (2) and, as so revised, in par. (1) made changes in structure and phraseology and re- vised means of notice and verification, and in par. (2) made changes in phraseology. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be pre- scribed to be promulgated at least one year prior to such effective date, and allowing any creditor to com- ply with any amendments, in accordance with the regu- lations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title. EFFECTIVE DATE Pub. L. 91–508, title V, § 503(2), Oct. 26, 1970, 84 Stat. 1127, provided that: ‘‘Section 133 of such Act [this sec- tion] takes effect upon the expiration of 90 days after such date of enactment [Oct. 26, 1970].’’ § 1644. Fraudulent use of credit cards; penalties (a) Use, attempt or conspiracy to use card in transaction affecting interstate or foreign commerce Whoever knowingly in a transaction affecting interstate or foreign commerce, uses or at- tempts or conspires to use any counterfeit, ficti- tious, altered, forged, lost, stolen, or fraudu- lently obtained credit card to obtain money, goods, services, or anything else of value which within any one-year period has a value aggre- gating $1,000 or more; or (b) Transporting, attempting or conspiring to transport card in interstate commerce Whoever, with unlawful or fraudulent intent, transports or attempts or conspires to transport in interstate or foreign commerce a counterfeit, fictitious, altered, forged, lost, stolen, or fraudu- lently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or (c) Use of interstate commerce to sell or trans- port card Whoever, with unlawful or fraudulent intent, uses any instrumentality of interstate or for- eign commerce to sell or transport a counter- feit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or (d) Receipt, concealment, etc., of goods obtained by use of card Whoever knowingly receives, conceals, uses, or transports money, goods, services, or anything else of value (except tickets for interstate or foreign transportation) which (1) within any one-year period has a value aggregating $1,000 or more, (2) has moved in or is part of, or which constitutes interstate or foreign commerce, and (3) has been obtained with a counterfeit, ficti- tious, altered, forged, lost, stolen, or fraudu- lently obtained credit card; or (e) Receipt, concealment, etc., of tickets for inter- state or foreign transportation obtained by use of card Whoever knowingly receives, conceals, uses, sells, or transports in interstate or foreign com- merce one or more tickets for interstate or for- eign transportation, which (1) within any one- year period have a value aggregating $500 or more, and (2) have been purchased or obtained with one or more counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit cards; or (f) Furnishing of money, etc., through use of card Whoever in a transaction affecting interstate or foreign commerce furnishes money, property, services, or anything else of value, which within any one-year period has a value aggregating $1,000 or more, through the use of any counter- feit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained— shall be fined not more than $10,000 or impris- oned not more than ten years, or both. (Pub. L. 90–321, title I, § 134, as added Pub. L. 91–508, title V, § 502(a), Oct. 26, 1970, 84 Stat. 1127; amended Pub. L. 93–495, title IV, § 414, Oct. 28, 1974, 88 Stat. 1520.) Page 1529 TITLE 15—COMMERCE AND TRADE § 1646 Editorial Notes AMENDMENTS 1974—Pub. L. 93–495 generally reorganized provisions by designating former unlettered paragraph cls. (a) to (f), and as so designated, expanded prohibitions relating to fraudulent use of credit cards, decreased amount re- quired for fraudulent use from a retail value aggre- gating $5,000, or more, to enumerated amounts for par- ticular activities, and increased the punishment from a sentence of not more than five years to a sentence of not more than ten years. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1974 AMENDMENT Amendment by Pub. L. 93–495 effective Oct. 28, 1974, see section 416 of Pub. L. 93–495, set out as an Effective Date note under section 1665a of this title. EFFECTIVE DATE Pub. L. 91–508, title V, § 503(3), Oct. 26, 1970, 84 Stat. 1127, provided that: ‘‘Section 134 of such Act [this sec- tion] applies to offenses committed on or after such date of enactment [Oct. 26, 1970].’’ § 1645. Business credit cards; limits on liability of employees The exemption provided by section 1603(1) of this title does not apply to the provisions of sec- tions 1642, 1643, and 1644 of this title, except that a card issuer and a business or other organiza- tion 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 busi- ness or other organization with respect to unau- thorized use of such credit cards without regard to the provisions of section 1643 of this title, but in no case may such business or other organiza- tion 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. (Pub. L. 90–321, title I, § 135, as added Pub. L. 93–495, title IV, § 410(a), Oct. 28, 1974, 88 Stat. 1519.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 28, 1974, see section 416 of Pub. L. 93–495, set out as a note under section 1665a of this title. § 1646. Dissemination of annual percentage rates; implementation, etc. (a) Annual percentage rates The Bureau shall collect, publish, and dissemi- nate to the public, on a demonstration basis in a number of standard metropolitan statistical areas to be determined by the Bureau, the an- nual percentage rates charged for representative types of nonsale credit by creditors in such areas. For the purpose of this section, the Bu- reau is authorized to require creditors in such areas to furnish information necessary for the Bureau to collect, publish, and disseminate such information. (b) Credit card price and availability informa- tion (1) Collection required The Bureau shall collect, on a semiannual basis, credit card price and availability infor- mation, including the information required to be disclosed under section 1637(c) of this title, from a broad sample of financial institutions which offer credit card services. (2) Sample requirements The broad sample of financial institutions required under paragraph (1) shall include— (A) the 25 largest issuers of credit cards; and (B) not less than 125 additional financial institutions selected by the Bureau in a manner that ensures— (i) an equitable geographical distribution within the sample; and (ii) the representation of a wide spec- trum of institutions within the sample. (3) Report of information from sample Each financial institution in the broad sam- ple established pursuant to paragraph (2) shall report the information to the Bureau in ac- cordance with such regulations or orders as the Bureau may prescribe. (4) Public availability of collected information; report to Congress The Bureau shall— (A) make the information collected pursu- ant to this subsection available to the public upon request; and (B) report such information semiannually to Congress. (c) Implementation The Bureau is authorized to enter into con- tracts or other arrangements with appropriate persons, organizations, or State agencies to carry out its functions under subsections (a) and (b) and to furnish financial assistance in support thereof. (Pub. L. 90–321, title I, § 136, as added Pub. L. 96–221, title VI, § 618(a), Mar. 31, 1980, 94 Stat. 183; amended Pub. L. 100–583, § 5, Nov. 3, 1988, 102 Stat. 2967; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. 1988—Subsecs. (b), (c). Pub. L. 100–583 added subsec. (b), redesignated former subsec. (b) as (c), and sub- stituted ‘‘subsections (a) and (b)’’ for ‘‘subsection (a)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE Section effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and al- lowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as an Effective Date of 1980 Amendment note under section 1602 of this title.