The Electronic Funds Transfer Act

There’s something called EFTA—the Electronic Funds Transfer Act—and you have rights when it comes to a fraudulent charge on your bank account. If your bank claims they’ve investigated but won’t refund a fraudulent charge, call us at 657-845-3100 or e-mail us at contact@kneuppercovey.com. We may be able to help.

Does the bank have to give me the money back if there was a fraudulent charge?


You might be wondering in the first place if the bank is even responsible. Under federal law, they can’t just say it’s your problem if there’s a fraudulent charge on your account. The Electronic Funds Transfer Act applies to charges or transfers that are initiated electronically (which is most charges these days).

The EFTA has protections for consumers who have unauthorized transfers on their account. For example, if your card is lost or stolen, and you report it within two days of finding out about the theft, your maximum liability is $50. It gets more complicated if you wait after that, but even then there are limits.

EFTA also requires the bank to conduct an investigation when you tell them that a transaction was unauthorized. If it’s true, they have to correct the transaction. And if they can’t complete the investigation in 10 days, they’re supposed to “recredit” your money temporarily while they make a final decision.

What can I do if my bank isn't following the law?


If you’re looking for a lawyer to help try to resolve a dispute over an unauthorized charge on your bank account, call us at 657-845-3100 or e-mail us at contact@kneuppercovey.com. We may be able to help.