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Credit Card Case Study

The Free Credit Card

As Jackson looked through his mail, he opened an envelope which contained a credit card. Jackson had not applied for this card, but he was in a hurry, so he placed the credit card, along with the rest of the mail, on the kitchen counter. He would deal with it later. That evening, Jackson's 15 year-old nephew, Ezekiel, came to visit. Ezekiel saw the credit card lying on the counter and when Jackson was not looking, Ezekiel slipped the card into his pocket. Ezekiel went to the mall that evening and used Jackson's credit card to purchase over $1,000 in gifts for his girlfriend. Jackson was furious when he received the bill and discovered Ezekiel's fraud. The issuer of the credit card claimed that Jackson was liable for the total amount of the purchases made by Ezekiel. Jackson claimed that he was not liable for any amount. Who is correct?

Solution Preview

This was a credit card theft by the juvenile nephew. The fact that Jackson hadn't ordered the credit card doesn't matter. Consumers often get mail for credit cards with outrageous fees that are ready to use, the same way that credit card companies often send blank checks as short-term loans for the cardholder which they can fill out and deposit ...

Solution Summary

This solution explains the free credit card situation. The legally responsible people, facts, and relevant laws are clearly identified in the solution.

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