What is David's liability for unauthorized purchases made with his credit card after reporting the loss?

David's liability for unauthorized purchases made with his credit card after reporting the loss is limited to $50, which aligns with the provisions set forth by the Fair Credit Billing Act (FCBA). According to the FCBA, if a credit card is lost or stolen and the cardholder reports it, they are only liable for up to $50 for any unauthorized charges made before the loss is reported.

This $50 limit serves to protect consumers from the financial burden of fraudulent transactions that they did not authorize. If the cardholder reports the loss before any unauthorized purchases are made, they are not held liable for any charges at all. However, if the consumer does not report the loss, they may face more significant liability, potentially up to the total amount of the unauthorized charges. In this scenario, since David reported the loss, this specific provision limits his financial responsibility, ensuring consumer protection against fraudulent use of credit cards.