Are You Liable for Credit Card Payments if Your Card is Stolen?

Despite all your care, your credit card has been stolen,if you report your card stolen within a reasonable
and now there are charges outstanding on it that youamount of time.
never authorised. Are you liable for those charges?- If someone else uses your card details without your
That all depends on the organisation that issued yourpermission, and your card has not been lost or stolen,
credit card. If that organisation subscribes to theyou will not have to pay anything.
Banking Code, there are very definite limits to your- If someone else uses your card details without your
liability if your card is stolen. The Banking Codepermission for a transaction where the cardholder
Standards Board is an organisation whose mission it isdoes not need to be present, you will not have to pay
to ensure that banks and building societies adhere toanything.
certain rules in dealing with their account holders.- If your card is used before you have received it, you
Membership in the BCSB is voluntary, but banks andwill not have to pay anything.
building societies who are members promise to abideUnder the above conditions, you are not liable for any
by certain rules in the way that they conduct businesscharges made to your card without your permission. If
and treat their customers. These rules include rules onyour card is still in your possession and someone else
how to deal with lost or stolen credit cards.uses your credit card details, you won't have to pay
According to the Banking Code, section 12:any of those charges. If someone uses your credit
Liability for lossescard for 'card not present' transactions - for instance,
12.11 If you act fraudulently, you will be responsible forto make online purchases - you don't have to pay any
all losses on your account. If you act withoutof those charges. If someone makes charges to your
reasonable care, and this causes losses, you may beaccount before you receive your credit card UK
responsible for them.Banking Code specifies that you won't have to pay
As long as you have not acted with completeanything.
recklessness, or participated in fraud, you areOf course, you are still liable for any charges that YOU
protected by the following section of the Bankingmade to your card. However, if your card is lost or
Code.stolen, and you report the loss, the most that you will
12.12 Unless we can show that you have actedbe liable for on those charges is £50 per card. It
fraudulently or without reasonable care, your liability foris in your best interest to find out before you apply for
the misuse of your card will be limited as follows.a credit card whether the issuing organisation
- If someone else uses your card, before you tell us itsubscribes to the UK Banking Code. When you apply
has been lost or stolen or that someone else knowsfor a credit card through moneyeverything.com, you
your PIN, the most you will have to pay iscan easily check each credit card UK issuer to
£50.Your liability for charges made to your lostresearch whether they subscribe to the UK Banking
or stolen card is £50 per card. In many cases,Code.
credit card issuers will even waive that first £50