Answers about Credit Cards

Does the Truth in Lending Act apply to credit cards issued for business purposes?

The Truth in Lending Act only applies to credit extended for business purposes in limited situations.

If a credit card is involved, then the requirements of the regulation that govern the issuance of credit cards and liability for unauthorized use apply. So, credit cards for business purposes can't be issued on an unsolicited basis. Also, if the card is lost or stolen, the cardholder generally cannot be held liable for more than $50 for the unauthorized use of the card.

March 2010