DEBIT CARD DISPUTES · EFTA & REGULATION E
Unauthorized transfers.
A denied dispute.
Know your EFTA rights.
When money leaves your account without permission, the bank’s response matters. The Electronic Fund Transfer Act and Regulation E give consumers protections that go beyond a bank’s internal refund policy.
Request a free case review →No attorney’s fees unless we win. Fee terms and case expenses are addressed in your written engagement agreement.
THE FEDERAL PROTECTIONS
What is the Electronic Fund Transfer Act?
The Electronic Fund Transfer Act (EFTA) is a federal law governing certain electronic transfers involving consumer accounts. Regulation E supplies detailed rules for reporting errors, investigating disputes, correcting mistakes, and limiting responsibility for unauthorized transfers.
These protections generally concern accounts established primarily for personal, family, or household use. They can apply to banks, credit unions, and qualifying payment providers—not only traditional debit-card issuers. The account, transfer method, and facts determine coverage.
Debit cards & ATMs
Card purchases you did not authorize, unauthorized withdrawals, and an ATM charging your account while dispensing the wrong amount.
ACH & account transfers
Unauthorized electronic debits, incorrect transfer amounts, and certain missing or incorrectly recorded electronic deposits.
Apps & account takeover
Qualifying mobile-wallet and person-to-person transfers, including transfers initiated by someone who stole access to your account.
A business account, ordinary paper check, or credit-card billing dispute generally falls outside these consumer EFT rules. Certain wire systems are excluded, while international remittances can involve separate protections. A purchase you authorized but later disliked or did not receive is not automatically an unauthorized-transfer claim. See our credit-card dispute practice for credit-card issues. See our identity-theft and FCRA credit-report dispute page for reporting issues involving fraudulent accounts or inaccurate information.
Sources: Regulation E coverage and CFPB electronic-transfer guidance.
MORE THAN A CUSTOMER-SERVICE REQUEST
What your bank must do after a covered error report
A timely report identifying your account and explaining the suspected error can trigger legal duties. You do not need to know the name “EFTA” to report a problem. Give the transaction date, amount, and reason you believe it is wrong, to the extent available.
- Begin investigating promptly. An oral report can trigger the process. The bank cannot postpone starting an investigation until you provide a police report or a signed statement.
- Follow the investigation deadlines. An institution generally has 10 business days to determine whether an error occurred. An extension usually requires provisional credit and additional notices, subject to exceptions.
- Correct an established error. Generally, correction is due within one business day after the bank determines an error occurred; results must be reported within three business days after completing the investigation.
- Explain an adverse decision. If the bank finds no error or a different error, it must provide written findings and explain your right to request the documents it relied on. Those documents must be provided promptly upon request.
A reasonable investigation should address relevant information. A prior purchase at the same merchant does not, by itself, establish that you authorized a later transaction.
Sources: 12 C.F.R. § 1005.11 and CFPB error-resolution FAQs.
REPORT PROMPTLY
Different deadlines answer different questions
Do not treat “60 days” as permission to wait. Reporting a lost card, disputing a statement entry, and filing a legal claim involve different rules.
Reporting within two business days after learning that an access device was lost or stolen generally limits liability to the lesser of $50 or the unauthorized transfers before notice. A later report can increase potential liability to as much as $500, subject to the rule’s conditions.
For the standard error-resolution process, notice generally must reach the institution within 60 days after it sends the first statement showing the error—not simply 60 days after the transaction. Missing this window can also expose you to additional later losses if the bank meets the applicable proof requirements.
EFTA civil actions generally must be filed within one year of the violation. Identifying the violation date and any applicable exceptions requires review. Repeated appeals or a complaint to a regulator should not be assumed to stop that clock.
The $50 and $500 rules are not automatic deductibles and do not apply to every unauthorized transfer. Special circumstances can affect reporting periods, and prepaid accounts have modified rules. Even if you think you reported late, preserve the dates and ask for an individual assessment.
Sources: Consumer liability, § 1005.6; error-reporting requirements; 15 U.S.C. § 1693m(g).
How provisional credit works
Provisional credit temporarily restores disputed funds while an investigation continues. It is not a final ruling that you won, and it is not required in every dispute.
When the bank needs more than 10 business days, the usual extension allows up to 45 calendar days from the original notice, generally with provisional credit. Certain new-account cases allow 20 business days for the initial period. Point-of-sale debit transactions, transfers initiated outside a state, and qualifying new-account transfers can allow up to 90 calendar days for investigation.
If the bank properly requests written confirmation of an oral report and does not receive it within 10 business days, it may investigate without providing provisional credit. Special prepaid-account verification rules can also affect protection.
A bank can reverse temporary credit after an adverse determination, but notice requirements still apply. Save the reversal notice, final findings, and any resulting fees. Read more about reversed provisional credit.
Sources: Investigation and credit rules; prepaid-account rules.
AFTER THE BANK SAYS NO
What to review after a denied debit-card claim
A denied claim does not automatically prove a violation. A review examines both who authorized the transfer and whether the institution fulfilled its error-resolution duties.
- Did the response cover every disputed transaction?
- Did the bank consider your account-takeover evidence or simply rely on a successful login?
- Did it investigate on time and provide required credit or notices?
- Did it provide written findings and the decision documents you requested?
Sharing a code is not the same as authorizing every transfer
CFPB guidance treats transfers initiated by a fraudster using credentials obtained through deception as unauthorized when the applicable definition is met. A payment you personally initiated after being deceived raises a different question. Explain exactly who entered the payment instructions; do not label every scam the same way.
What may be recoverable in an EFTA case?
Depending on the violation and evidence, relief may include correction of the account, actual damages caused by the violation, statutory damages, and attorney’s fees and costs in a successful action. Section 1693m provides $100 to $1,000 in statutory damages for an individual action; that is not a guaranteed payment or an automatic award for each disputed transaction.
The account agreement may require arbitration instead of a court proceeding. The applicable agreement determines procedural steps and may allocate filing fees. We review those terms rather than assuming the bank pays every expense.
No attorney’s fees unless we win. Your written engagement agreement addresses the fee arrangement and case expenses. A free review is not a promise of representation or a particular recovery.
What to bring to a free case review
Start with the bank’s name, approximate loss, and a brief timeline. If available, keep the statement showing the transfer, your first dispute report and claim number, denial letters, temporary-credit notices, and relevant security alerts. Note related fees separately.
Bank Dispute Law can assess coverage, compare the bank’s handling with the legal requirements, and discuss whether a claim or further investigation may be appropriate. Do not send passwords, PINs, full card numbers, or full Social Security numbers through the initial form.
Common EFTA questions
Do I need a police report before the bank investigates?
A qualifying error notice can trigger investigation duties without a police report. A report may be useful evidence, but the bank cannot make it a condition of starting the required investigation.
Can I ask for help before the bank denies my dispute?
Yes. Delays, missing notices, or uncertainty about reporting can merit review while a dispute is pending. Report the error to your bank promptly rather than waiting for a consultation.
What if the bank says I was careless?
Consumer negligence alone does not allow a bank to impose greater liability than Regulation E permits. Actual authority, the circumstances of the transfer, and reporting dates still matter.
Does EFTA cover every Cash App or other payment-app scam?
No. A transfer may fall within EFTA’s coverage without qualifying as an unauthorized transfer. Who initiated it, whether they had authority, and which account funded it are central to the analysis.
Will submitting this form start my legal case?
No. It requests a review. Representation begins only by agreement with the firm, and submitting an inquiry does not pause a reporting or filing deadline.
Legal sources checked October 1, 2026. General information, not legal advice. Read the disclaimer.
No attorney’s fees unless we win. Fee terms and responsibility for case expenses are addressed in your written engagement agreement.
FREE CASE REVIEW
Let’s talk about
what happened.
Complete our online form or call with a brief description of your dispute.
We’ll discuss what information is needed next.
Please do not provide account passwords, PINs, or your full Social Security number.