It’s important to note that the Fair Credit Billing Act caps your liability at $50 for unauthorized credit card charges — but you have to notify the bank in a timely fashion that someone is using your card. (You should notify your bank in writing within 60 days of the first incorrect bill.) One Colorado man is finding out the hard way that not noticing an $11,000 charge to your account for months is really, really bad.

Unfortunately, he may be stuck with the debt. First, because he didn’t notice the charges and kept paying the usual amount month after month — then because Bank of America demanded $2,500 that he didn’t have — so he transferred some of the debt to another credit card.

“So, to avoid the $2,500 which I did not have in cash at the time, I just…I talked to (Chase) and I said I want to transfer this amount of money from another card over,” said Godding.
He transferred the balance to a Chase account with a high credit line. That proved to be the second critical error. An attorney told Godding that because he transferred the balance, the debt is likely now his.
“I made the total payoff when I switched. I shouldn’t have paid it,” said Godding.
Now, he’s stuck paying a $500 minimum monthly payment.

Bank of America says its looking into the situation, and the man, who was retired but now has gone back to work part-time job to pay off the debt, says he only blames himself.

“Pay attention. Observe. Watch what you’re doing,” he told ABC7 in Denver.

We hope Bank of America helps him out.

Retiree Forced To Pay $11,000 In Fraudulent Credit Card Charges [The Denver Channel] (Thanks, Kensey!)
Fair Credit Billing [FTC]
Your Liability for Unauthorized Credit and Debit Card Charges [NOLO]
(Photo:epicharmus)

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