A. A cardholder is liable for the unauthorized use of a credit card only if:
(1) the card is an accepted credit card;
(2) the liability is not in excess of fifty dollars ($50.00);
(3) the card issuer has provided the cardholder with a toll-free number or other convenient, no-cost method of notifying the card issuer in the event of loss or theft of the credit card; and
(4) the unauthorized use occurs before the cardholder has notified the card issuer that an unauthorized use of the credit card has occurred or may occur as the result of loss, theft or otherwise.
B. No cardholder is liable for the unauthorized use of any credit card that was issued on or after the effective date of the Credit Card Act, and, after the expiration of twelve months following that effective date, no cardholder is liable for the unauthorized use of any credit card regardless of its date of issuance unless:
(1) the conditions of liability specified in Subsection A of this section are met; and
(2) the card issuer has provided a method whereby the user of the credit card can be identified as the person authorized to use it.
C. For the purposes of this section, a cardholder notifies a card issuer by taking such steps as may be reasonably required in the ordinary course of business to provide the card issuer with the pertinent information whether or not any particular officer, employee or agent of the card issuer does in fact receive such information.
D. 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 of this section, have been met.
E. 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.
F. Except as provided in this section, a cardholder incurs no liability from the unauthorized use of a credit card.
History: 1953 Comp., § 50-19-4, enacted by Laws 1971, ch. 154, § 4; 1995, ch. 190, § 6.
ANNOTATIONSCompiler's notes. — The phrase "effective date of the Credit Card Act" refers to the effective date of Laws 1971, ch. 154, which was May 19, 1971.
The 1995 amendment, effective June 16, 1995, substituted "toll-free number or other convenient, no-cost method of notifying the card issuer" for "self-addressed, pre-stamped notification to be mailed by the cardholder" in Paragraph (3) of Subsection A, and made minor stylistic changes in Subsections B and D.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 66 Am. Jur. 2d Receiving Stolen Property § 40.
Liability of a holder of credit card or plate for purchases made by another person, 15 A.L.R.3d 1086.
Criminal liability for the unauthorized use of credit cards, 24 A.L.R.3d 986.
17A C.J.S. Contracts § 402; 35 C.J.S. False Pretenses §§ 20, 52.