Professor Richard M. Alderman, Associate Dean at the University of
Houston Law Center, who is known to many as "The People's Lawyer", answers your most common questions. If you have a question pertaining to the law in Texas, please e-mail Richard at peopleslawyer@www.law.uh.edu. This page answers your questions on Credit Cards
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A. You are generally correct. Texas law prohibits surcharges for the use of a credit card. This law does not apply, however, if the entity charging the fee is a government entity, or the transaction is taking place in another state.
Q. My credit card was either lost or stolen. I didn't notice it was missing until more than a week after it had already been used by someone else. When I contacted the credit card company to report the loss, they told me I was responsible for the charges that occurred before I reported the loss. This doesn't seem fair. How could I report the loss before I even knew it was missing? What are my rights?
A. What the credit card company has told you is wrong. Under federal law, your maximum liability for charges from a lost or stolen credit card is $50.00. The credit card company is correct that the date you report the loss matters. It only matters, however, because if you report the loss before the card is used, you are not even liable for the first $50.00.
I suggest you contact the credit card company , in writing, certified mail, and let them know you know your legal rights. Unless they can show you authorized the charges, you should not have any liability beyond the first $50.00.