15 U.S.C. § 1643 — Liability of holder of credit card

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 authority to act on behalf of the new cred- itor; (D) the location of the place where trans- fer of ownership of the debt is recorded; and (E) any other relevant information regard- ing the new creditor. (2) Definition As used in this subsection, the term ‘‘mort- gage loan’’ means any consumer credit trans- action that is secured by the principal dwell- ing of a consumer. (Pub. L. 90–321, title I, § 131, May 29, 1968, 82 Stat. 157; Pub. L. 96–221, title VI, § 616(a), Mar. 31, 1980, 94 Stat. 182; Pub. L. 103–325, title I, § 153(c), Sept. 23, 1994, 108 Stat. 2195; Pub. L. 104–29, § 7, Sept. 30, 1995, 109 Stat. 274; Pub. L. 111–22, div. A, title IV, § 404(a), May 20, 2009, 123 Stat. 1658; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes REFERENCES IN TEXT Section 1602(aa) of this title, referred to in subsec. (d)(1), (4), was redesignated section 1602(bb) of this title by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107. AMENDMENTS 2010—Subsec. (d)(4). Pub. L. 111–203 substituted ‘‘Bu- reau’’ for ‘‘Board’’. 2009—Subsec. (g). Pub. L. 111–22 added subsec. (g). 1995—Subsec. (e). Pub. L. 104–29, § 7(a), added subsec. (e). Subsec. (f). Pub. L. 104–29, § 7(b), added subsec. (f). 1994—Subsec. (d). Pub. L. 103–325 added subsec. (d). 1980—Pub. L. 96–221 added subsecs. (a) and (c), des- ignated existing provisions as subsec. (b), substituted ‘‘excepted as provided in subsection (a)’’ for ‘‘unless the violation is apparent on the face of the statement’’, and struck out exception for actions under section 1640(d) of this title. 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 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. § 1642. Issuance of credit cards No credit card shall be issued except in re- sponse to a request or application therefor. This prohibition does not apply to the issuance of a credit card in renewal of, or in substitution for, an accepted credit card. (Pub. L. 90–321, title I, § 132, as added Pub. L. 91–508, title V, § 502(a), Oct. 26, 1970, 84 Stat. 1126.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 91–508, title V, § 503(1), Oct. 26, 1970, 84 Stat. 1127, provided that: ‘‘Section 132 of such Act [this sec- tion] takes effect on date of enactment of this title [Oct. 26, 1970].’’ § 1643. Liability of holder of credit card (a) Limits on liability (1) A cardholder shall be liable for the unau- thorized 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 card- holder 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 re- quired by section 1637(b) of this title or on a separate notice accompanying such statement; (E) the unauthorized use occurs before the card issuer has been notified that an unau- thorized use of the credit card has occurred or 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.)