Perry reported his stolen credit cards after four days. What is the total amount he is responsible for in incurred charges?

When it comes to the liability for unauthorized charges made with a stolen credit card, the timing of reporting the theft plays a significant role. Under the Fair Credit Billing Act (FCBA), if a credit cardholder reports a lost or stolen card within two business days, they are only responsible for up to $50 of any unauthorized charges. However, if the cardholder waits longer, their liability can increase.

In this scenario, since Perry reported his stolen credit cards after four days, he falls into a liability bracket where he might be responsible for a higher amount. The law typically states that if a cardholder does not report the loss within two business days but reports within 60 days of receiving the statement which features the unauthorized transaction, they could be liable for up to $500.

The answer of $185 indicates that Perry is likely responsible for the unauthorized charges incurred in the days following his delay in reporting the stolen cards. This suggests that he had unauthorized charges amounting to $185 that were incurred during that period before he reported the theft.

Thus, the correct answer reflects the specific amount Perry is liable for based on the timing of his report and the corresponding unauthorized charges incurred on his credit card. Understanding the nuances of consumer protection laws like the FCBA