Credit Card Liabilities and Fraud

When a credit card is lost or stolen, it can be used until its owner reports it as missing. This loss of one's credit card can result in fraud and therefore, being aware of the legalities that follow is important. This assignment addresses the legal ramifications.

Consider the following scenario:

Furman Smoogie, a sales and marketing representative for the Rubberman Corporation in Centervale, took his client Warren Sacamano to an expensive lunch at a fancy steakhouse. At the time of paying the bill, Furman noticed that his American Express card was missing from his wallet. He used his Visa card instead. While driving home, Furman realized that he had last used the missing American Express card about a week earlier when he dined at a local sushi bar. He was now concerned that a sales clerk may have used the card to make fraudulent purchases.

Using your assigned readings, Argosy University online library resources, and the Internet, prepare a paper which addresses the following:

Review and identify Furman's legal rights in this situation.

Explain the probability that Furman will have to pay American Express for any illegal charges to the account.

Evaluate the steps which he should take in order to protect himself from further loss as a result of losing his card.