Study Of Dispute Over Unauthorized Use Of Credit Card

Disputes are based on controversies between one another, and so is dispute over unauthorized use of credit card. Such dispute, based on the legal relationship of credit card transaction, specializes in its multiple parties, special legal structure, vagueness of the nature of its conduct and complexity of its liability allocation. Therefore, by analyzing such issues, this paper provides the study of unauthorized use with some inspiration and methods from the perspective of POS transaction.The significance and reason of choosing this topic are explained in the preamble, and the theory study and current legal condition are also included there.Beside preamble, the paper is divided into three chapters:The first chapter introduced the structure of legal relationship in credit card transaction in detail, including definition of credit card, legal structure of credit card transaction and legal relationship between the parties. The paper is in favor of the quadrilateral structure, and supports the independence of the legal relationship under such structure. All above will provide the responsibility sharing in disputes over unauthorized use with theoretical basis.The second chapter legally analyzed the unauthorized use of credit card. First, the paper sorted out various kinds of unauthorized use, making the category of concept clear. Second, theoretically analyzed the unauthorized use of credit card, identified the legal nature of the such conduct, and graphically illustrated the basic legal relationship between the parties. Third, taking the credit card contract of ICBC as sample, examined the effect of the clauses about unauthorized use. At last, clarified the origin and nature of the duty of care of the parties in the dispute.The third chapter studied the regulation of unauthorized use from three key aspects: liability sharing, cost sharing and allocation of burden of proof. The proportion of liability determines the allocation of loss. The allocation of the burden of proof fixes the phenomenon of the imbalance in burden of proof, then clarifies the detailed content of each party’s burden of proof. The paper also shed some light on special conditions where the transfer of the burden of proof may occur.In conclusion, three suggestions were provided as the regulation of unauthorized use. The first is the nature of credit card contract should be changing from innominate contract to named contract. The second is the authorities should design and issue the sample text of credit card contract. The last is the judicial practice should play a guiding role in the credit card transaction.