Which U.S. law limits a consumer’s liability for unauthorized credit-card use to $50?

The U.S. Truth in Lending Act limits a consumer’s liability for unauthorized credit-card use to $50 under specified conditions.

The Truth in Lending Act, commonly called TILA, was enacted in 1968. It requires lenders to disclose important borrowing costs and terms in a standardized way, including finance charges and the annual percentage rate.

For unauthorized credit-card transactions, federal rules generally cap the cardholder’s liability at $50 if the card is lost or stolen and the issuer is notified as required. Many card networks and issuers voluntarily provide stronger zero-liability policies, but those policies are separate from the statutory protection.

Debit-card liability follows different rules because debit transactions draw on a deposit account. Consumers should report unauthorized activity promptly and follow the issuer’s procedures, since timing can affect legal protections.