Kansas Statutes 16-842. Liability of credit cardholder for unauthorized use, when; actions for enforcement of liability
Terms Used In Kansas Statutes 16-842
- accepted credit card: means any credit card which the cardholder has requested and received or has signed or has used, or authorized another to use, for the purpose of obtaining money, property, or services on credit. See Kansas Statutes 16-844
- adequate notice: means a printed notice to a cardholder which sets forth the pertinent facts clearly and conspicuously so that a person against whom it is to operate could reasonably be expected to have noticed it and understood its meaning. See Kansas Statutes 16-844
- card issuer: means any person who issues a credit card, or the agent of such person with respect to such card. See Kansas Statutes 16-844
- cardholder: means any person to whom a credit card is issued or any person who has agreed with the card issuer to pay obligations arising from the issuance of a credit card to another person. See Kansas Statutes 16-844
- credit card: means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. See Kansas Statutes 16-844
- unauthorized use: means a use of a credit card by a person other than the cardholder who does not have actual, implied, or apparent authority for use and from which the cardholder receives no benefit. See Kansas Statutes 16-844
(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 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. The card issuer shall provide a telephone number to be called by the cardholder in the event of loss or theft of the credit card. 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 12 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.
(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 the cardholder’s 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.