16-842.   Liability of credit cardholder for unauthorized use, when;actions for enforcement of liability.(a) A cardholder shall be liable for the unauthorized use of a creditcard only if the card is an accepted credit card, the liability is not inexcess of $50, the card issuer gives adequate notice to the cardholder ofthe potential liability and the unauthorized useoccurs before the cardholder has notified the card issuer that anunauthorized use of the credit card has occurred or may occur as the resultof loss, theft or otherwise. The card issuer shall provide a telephonenumber to be called by the cardholder in the event of loss or theft of thecredit card. Notwithstanding the foregoing, no cardholdershall be liable for the unauthorized use of any credit card which wasissued on or after the effective date of this section, and, after theexpiration of 12 months following such effective date, no cardholdershall be liable for the unauthorized use of any credit card regardless ofthe date of its issuance, unless: (1) The conditions of liability specifiedin the preceding sentence are met; and (2) the card issuer has provided amethod whereby the user of such card can be identified as the personauthorized to use it. For the purposes of this section, a cardholdernotifies a card issuer by taking such steps as may be reasonably requiredin the ordinary course of business to provide the card issuer with thepertinent information whether or not any particular officer, employee oragent of the card issuer does in fact receive such information.

      (b)   In any action by a card issuer to enforce liability for the use of acredit card, the burden of proof is upon the card issuer to show that theuse was authorized or, if the use was unauthorized, then the burden ofproof is upon the card issuer to show that the conditions of liability forthe unauthorized use of a credit card, as set forth in subsection (a), havebeen met.

      (c)   Nothing in this section imposes liability upon a cardholder for theunauthorized use of a credit card in excess of the cardholder'sliability for such useunder other applicable law or under any agreement with the card issuer.

      (d)   Except as provided in this section, a cardholder incurs no liabilityfrom the unauthorized use of a credit card.

      History:   L. 1972, ch. 209, § 2; L. 1983, ch. 78, § 1; July 1.