Under federal law, you are liable for only the first $50 of unauthorized charges resulting from the loss or theft of your credit card. However, you are not liable for anything if you notify the card issuer before someone else uses the card.

Liability for unauthorized use of a debit card, such as those used at automatic teller machines (ATMs), depends on when you report the loss. Under federal law, you are liable for only $50 if you notify the bank within two business days after your card is stolen. But, if you don't act quickly, you are liable for up to $500 withdrawn from your account. In addition, even the $500 limit expires 61 days after the mailing date of your first bank statement showing the unauthorized withdrawals. Cardholders who do not notify the bank by that point may be liable for all funds withdrawn, including any that hit an overdraft line of credit.

CRN200801-2012531