Pub. L. 91-508, tit. V, sec. 502

Sec. 502. (a) The Truth in Lending Act (82 Stat. 146) is amended by adding after section 131 the following sections: “§ 132. Issuance of credit cards “No credit card shall be issued except in response to a request or application therefor. This prohibition does not apply to the issuance of a credit card in renewal of, or in substitution for, an accepted credit card. “§ 133. Liability of holder of credit card “(a) A cardholder shall be liable for the unauthorized use of a credit card only if the card is an accepted credit card, the liability is not in excess of $50, the card issuer gives adequate notice to the cardholder of the potential liability, the card issuer has provided the cardholder with a self-addressed, prestamped notification to be mailed by the cardholder in the event of the loss or theft of the credit card, and the unauthorized use occurs before the cardholder has notified the card issuer that an unauthorized use of the credit card has occurred or may occur as the result of loss, theft, or otherwise. Notwithstanding the foregoing, no cardholder shall be liable for the unauthorized use of any credit card which was issued on or after the effective date of this section, and, after the expiration of twelve months following such effective date, no cardholder shall be liable for the unauthorized use of any credit card regardless of the date of its issuance, unless (1) the conditions of liability specified in the preceding sentence are met, and (2) the card issuer has provided a method whereby the user of such card can be identified as the person authorized to use it. For the purposes of this section, a cardholder notifies a card issuer by taking such steps as may be reasonably required in the ordinary course of business to provide the card issuer with the pertinent information whether or not any particular officer, employee, or agent of the card issuer does in fact receive such information. 84 Stat. 1127 “(b) In any action by a card issuer to enforce liability for the use of a credit card, the burden of proof is upon the card issuer to show that the use was authorized or, if the use was unauthorized, then the burden of proof is upon the card issuer to show that the conditions of liability for the unauthorized use of a credit card, as set forth in subsection (a), have been met. “(c) Nothing in this section imposes liability upon a cardholder for the unauthorized use of a credit, card in excess of his liability for such use under other applicable law or under any agreement with the card issuer. “(d) Except as provided in this section, a cardholder incurs no liability from the unauthorized use of a credit card. “§ 134. Fraudulent use of credit card “Whoever, in a transaction affecting interstate or foreign commerce, uses any counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card to obtain goods or services, or both, having a retail value aggregating $5,000 or more, shall lie fined not more than $10,000 or imprisoned not more than five years, or both.” (b) The table of contents of chapter 2 of the Truth in Lending Act is amended by adding at the end thereof the following: “132. Issuance of credit cards. “133. Liability of bolder of credit card. “134. Fraudulent use of credit card.”