The Electronic Fund Transfer Act was designed to protect consumers who use debit cards, ATMs, direct deposits, and electronic bill payments. When an unauthorized transaction hits your account, your bank is required to investigate promptly and, in most cases, provide provisional credit while the investigation is pending. When banks cut corners, deny valid claims, or ignore their obligations, you have the right to sue.
Electronic Fund Transfer Act (EFTA) / Regulation E · 15 U.S.C. § 1693
The EFTA and its implementing regulation (Regulation E) establish consumer rights for electronic fund transfers, including error resolution procedures, liability limits for unauthorized transfers, and requirements for provisional credit during investigations.
Warning Signs
You may qualify if…
Unauthorized withdrawals, charges, or transfers from your account
Bank failed to investigate your error claim within 10 business days
Bank denied your claim without conducting a reasonable investigation
Bank failed to provide provisional credit during the investigation period
Provisional credit was reversed without proper notice or a completed investigation
Bank failed to provide written explanation after denying your claim
Recurring charges continued after you revoked authorization
Your Rights
What you may be entitled to
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Actual damages — the full amount of the unauthorized transfer
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Statutory damages of $100 to $1,000 for EFTA violations
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Attorney's fees and costs paid by the bank
EFTA cases are handled on a contingency basis — you pay no attorney's fees out of pocket. In most consumer cases, attorney's fees are paid by the defendant under federal fee-shifting statutes.
Every case is different. The outcomes described above are potential remedies available under the law, not guaranteed results. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.