Liability for misuse of the credit card
October 14, 2023 | 40,00 EUR | answered by Karl Böhm
Dear lawyer specializing in banking law,
I am reaching out to you as I urgently need help regarding an issue with my credit card. My name is Xenia Otten and I have been a customer of a large bank for several years. Recently, I noticed that my credit card was being used fraudulently and large amounts were being deducted without my authorization.
I have already contacted my bank and reported the incident. However, they are now holding me responsible for the fraudulent usage and threatening me with liability. I feel very unsettled and unsure of how to proceed in this situation. I did not authorize the transactions nor was I near the location where they took place.
My concern is that I may be held liable for the incurred costs, even though I am not at fault. I have always been careful with my credit card and cannot explain how this incident occurred. Can you please inform me about the legal situation in such a case and whether I am indeed required to cover the costs? Are there any ways to limit my liability or compel the bank to cover the costs?
I would greatly appreciate your support and advice, as I am currently feeling very uncertain and unsure about how to proceed.
Thank you in advance for your help.
Best regards,
Xenia Otten
Dear Mrs. Otten,
I understand your concern and can empathize with the difficult situation you are in. The misuse of your credit card is a serious issue that needs to be resolved as soon as possible. It is important that you protect yourself legally in this situation and uphold your rights as a consumer.
In a case like yours, it is important that you have already reported the incident to your bank, which you have done. The bank is obligated to investigate the incident and assist you in resolving the misuse. However, it is unfortunate that the bank is now holding you responsible for the fraudulent use and threatening liability.
Under German law, it is generally the cardholder's responsibility for the unauthorized use of their credit card, unless they can prove that the card was not lost negligently or grossly negligently. In your case, it seems that you did not lose the card and did not handle it negligently. Therefore, you should clearly communicate to the bank that you are not at fault for the misuse and do not wish to be liable for the costs.
You have the right to request a copy of the relevant credit card agreement as well as all information and documents related to the disputed transactions from your bank. This can help you in uncovering the misuse and proving your innocence.
If the bank continues to insist on your liability, you should consider seeking legal assistance. A lawyer specializing in banking law can help you represent your interests and potentially take legal action against the bank to limit your liability or compel the bank to cover the costs.
It is important that you remain calm in this situation and educate yourself to protect your rights. I hope that my explanations are helpful to you and wish you success in resolving the incident.
Sincerely,
Karl Böhm
