Unauthorized Bank Charges in Virginia: Know Your Rights

You check your bank app. There is a charge you did not make. Or an ATM withdrawal in a city you have never been to. Or your whole paycheck is gone.

You call the bank. They say "we looked into it, and we are not giving it back."

That answer is often wrong. A federal law called the Electronic Fund Transfer Act (people call it EFTA, and its rule is called Regulation E or "Reg E") protects every personal checking or savings account at a bank or credit union in Virginia. Business accounts are not covered. The bank has to follow it. If they do not, you can make them pay.

What does this law cover?

EFTA covers money that moves in or out of your bank account by computer instead of by check. That includes:

• Debit card purchases
• ATM withdrawals
• Direct deposits and automatic bill payments
• Transfers through apps like Zelle, Venmo, or Cash App when they pull from your bank account
• Prepaid debit cards and payroll cards

It does not cover credit cards. Credit cards have their own law. If a credit card was used without your OK, we can help with that too.

It also does not cover old-style wire transfers, the kind a bank sends through Fedwire or SWIFT. But a transfer you start from an app or from online banking may still count. If you are not sure, ask us.

What counts as "unauthorized"?

Any transfer you did not make and did not give someone permission to make. For example:

• Your card was lost or stolen and someone used it
• Someone got your card number and shopped online
• A hacker got into your account
• A company kept charging you after you told them to stop

One tricky area is scams. If a scammer tricked you into sending money yourself, the bank may say it does not count. But if the scammer got into your account and moved the money without you, that is unauthorized. These cases are worth a close look.

Here is something banks do not want you to know. It does not matter if you were careless. Maybe you wrote your PIN on the card. Maybe a scammer talked you into reading them a security code, and then they moved your money. The bank cannot deny your claim for that. The only thing that matters is how fast you told the bank.

How much can I lose?

This is the part most people do not know. Your loss is capped if you report the problem fast.

If your card was lost or stolen:

• Report within 2 business days of learning it is gone: you can lose no more than $50.
• Miss the 2 days but report within 60 days of the bank statement that shows the problem: you can lose no more than $500.
• Wait more than 60 days: you can be on the hook for charges that happen after the 60 days run out. But only if the bank can prove it would have stopped them had you reported on time. Even if you are late, the bank still owes you for the charges that happened before the deadline passed.

If your card was not lost or stolen (for example, someone skimmed your number or hacked your login), the $50 and $500 limits do not apply at all. You owe nothing for the charges, as long as you report within 60 days of the statement that shows them.

There is no deadline at all on the first unauthorized charge. Banks turn people away for being "too late" all the time. Many of those people still have a case.

Many banks also promise "zero liability." That is their policy, and it is a promise they should keep.

What does the bank have to do when I report it?

The bank cannot just shrug. The law says the bank must:

1. Investigate. They have to actually look into it.
2. Answer within 10 business days. If they need more time, they must put the money back in your account while they keep looking. This is called "provisional credit." (The bank can ask you to confirm your report in writing within 10 business days. If you skip that, they can skip the temporary credit.)
3. Finish within 45 days for things like ATM withdrawals and bank-to-bank transfers, or up to 90 days for debit card purchases and out-of-state transfers.
4. Tell you what they found in writing. If they say no, they must explain why and give you the records they used if you ask.

The bank also cannot make you jump through hoops first. It cannot demand a police report, a sworn statement, or that you try to work it out with the store before it will look into your claim. And it cannot deny your claim just because you shopped at that store before.

A bank that takes weeks, gives you the runaround, or refuses without a real investigation is breaking the law.

Can I stop a company from charging my account?

Yes. If a company takes money out of your account on a schedule, like a gym or a subscription, you can tell your bank to stop it. Tell the bank at least 3 business days before the next charge, and put it in writing if they ask. The bank has to stop it. If they let the charge through anyway, that is on them.

The bank said no. Now what?

Do not give up. A "no" from the bank is not the end.

If the bank did not do a real investigation, missed a deadline, or refused to give you the records, they broke the law. You can sue, and you can get:

• Your money back. Every dollar they should have returned.
• Extra money on top. The law adds between $100 and $1,000 even if your loss was small.
• Your lawyer's fees paid by the bank. If you win, the bank pays your attorney fees and costs. You should not have to spend money to get your own money back.
• Three times your loss in some cases. If the bank skipped the temporary credit and did not do a real investigation, or denied your claim when the evidence did not support it, the law triples your damages.

How long do I have?

• Tell the bank fast. The 2-day and 60-day rules above decide how much of your own money you can lose.
• You have 1 year to sue. The clock can start as early as 10 business days after you first reported the problem, not when the bank finally says no.

Do not wait for a denial letter to call us.

What should I do right now?

1. Report it to the bank right away. Call first. Then follow up in writing within 10 business days, to the address the bank gives you. Say clearly that the charge was unauthorized. Write down who you talked to and when.
2. Keep your statements. Circle every charge that is not yours.
3. Save every letter, email, and text from the bank.
4. Ask for the records they used to decide. They have to give them to you.
5. Do not accept a partial refund as a final answer without talking to a lawyer.
6. Call Johnson Consumer Law. We will look at your case for free.

We can help

Banks count on Virginia customers giving up. Do not.

Johnson Consumer Law helps people in Virginia get their money back when a bank refuses to fix fraud on their account. Your case review is free. If we take your case and win, the bank pays our fees, not you.

Call Johnson Consumer Law today or fill out our short form. Let's get your money back.

This page is general information, not legal advice. Every case is different. Talk to a Virginia lawyer about your situation.