LOST AND STOLEN CREDIT CARDS

By virtue of s.66 of the Consumer Credit Act 1974 the debtor under a credit card agreement is not liable for use of the card made by another person unless:

(a) the debtor had previously accepted the card, or

(b) its use constituted an acceptance by him.

A debtor accepts a credit card by signing it, or a receipt for it.

By section 84

where misuse has been carried out by a person who has possession of the card with the debtor’s consent then the debtor’s liability will be:

(a) Nil if the credit card agreement does not contain, in the prescribed manner, particulars of the name address and telephone number of a person to whom notice of loss, etc., can be given.

(b) The whole of any amount, without limit, arising up to the moment the creditor was notified of the loss of the card. The notice may be oral and where the agreement requires oral notice to be confirmed in writing within a specified time then this must be done.

where the misuse has been carried out by a person who has obtained possession of the card without the debtor’s consent then the debtor’s liability arising from the misuse will be:

(a) Nil if the credit card agreement does not contain, in the prescribed manner, particulars of the name address and telephone number of a person to whom notice of loss, etc., can be given.

(b) Limited to £50, or the credit limit if lower.

If the debtor cancels a credit card agreement then he will only cease to be liable for loss arising from misuse when the card is returned to the creditor.