What is the liability for unauthorized charges made on a credit card between when it is lost and reported if it results in a combination of $60 and $100?

The law governing liability for unauthorized charges on credit cards, specifically under the Fair Credit Billing Act (FCBA), states that if a credit card is lost or stolen and the cardholder reports it, they have limited liability for any unauthorized charges that occur after the card is lost but before it is reported.

In this scenario, the cardholder's liability for unauthorized transactions is limited to $50 if the card is reported stolen after the unauthorized charges occur. However, the critical detail involves the timing and amount of the charges. Since the total combination of unauthorized charges is $160 ($60 + $100), the cardholder would only be responsible for the first $50 of that total. Therefore, the correct answer is $50, as that is the maximum liability for unauthorized charges after reporting the loss of the card, reflecting the protections afforded to consumers under the law.

In this case, the answer provided indicates that the liability is $50, which aligns with the statutory limits outlined in the FCBA for unauthorized transactions on lost or stolen credit cards.