If Jane Smith loses her credit card and reports it two days later, what is her liability for unauthorized charges?

The correct answer is rooted in the regulations established by the Fair Credit Billing Act (FCBA), which protects consumers who report lost or stolen credit cards. When a credit card is reported lost, the cardholder's liability for unauthorized charges is specifically limited.

In this scenario, Jane reported her lost credit card two days after losing it. According to the provisions of the FCBA, if she reports the card lost before any unauthorized charges are made, she will not be liable for those charges. However, if unauthorized charges occur before she reports the loss, she could be responsible for them up to a specific amount.

For unauthorized charges made on the day after the card is reported (the first day after), the liability is capped at $50. Since Jane reported the card two days after it was lost, any unauthorized charges made on that day are typically considered her responsibility up to that limit. However, once she has reported it lost, she has no liability for any fraudulent charges incurred after that report.

This context leads to the conclusion that Jane would ideally have $0 liability for unauthorized charges made after she reported the card lost, making that answer substantially more favorable than the others. Thus, initially reporting the loss of her card in a timely manner effectively minimizes her