Menu Close

Has a creditor ever added charges to your account, without your permission, or sent a bill for merchandise never order or services rendered? If so you need to know your rights under the Electronic Funds Transfer Act (“EFTA”). If you suspect, there has been an unauthorized transactions on your bank account, you have rights, but the time frame is limited. Under the EFTA, you must write or call the bank immediately, but no later than (60) days from the date of the statement reflecting the unauthorized charge. Your bank has a duty to investigate and promptly correct any unauthorized transactions that you report. The bank must resolve the dispute within (45) days. Moreover, if the bank takes longer than (10) business days to complete its investigation, it must put the funds back into your account while it finishes the investigation. The bank must also notify you of the results of its investigation and promptly correct any errors. If the bank should find there was no error, it must explain in writing why it believes there was no error.

It is also important to be aware of your potential liability if your debit card is lost or stolen. On a debit card, your liability for an unauthorized withdrawal may vary. The best advice is to act quickly because this will limit your liability. Your loss is limited to $50.00 if your notify your bank within two days. However, if you notify the bank after two day period, your liability can be up to $500.00. If you fail to notify your bank within a 60 days after the receipt of the statement showing the unauthorized transaction, you risk unlimited loss on unauthorized transfers. This should be contrasted with a credit card. If your credit card is lost or stolen, your liability is usually limited to $50.00.

If your bank does not (1) provisionally re-credit the money to your account during the 10-day period; (2) does not make a good faith investigation of the alleged error; or (3) knowingly and willfully concludes that the consumer account was not in error when such a conclusion could have been reasonably drawn from the evidence, your bank may liable for treble damages (three times your actual damages). If you having problems with an unauthorized bank transaction, Doan Law Firm can help you not only recover the funds, but you may also be entitled to tremble damages under the EFTA.


  1. Always review your monthly banking statements.
  2. Promptly notify your bank of an error.
  3. Put the bank on notice in writing of the unauthorized charge.

For more information, please contact Doan Law, and click here.