Banking Disputes Frequently Asked Questions
If you notice money missing from your bank account or unauthorized charges, you reasonably expect your bank to return your missing funds. However, sometimes banks do not cooperate and refuse to refund you. When this happens, we are here to answer your questions and protect your rights. Please see some answers to frequently asked questions about banking disputes below.
Someone took money from my bank account. Do I need a lawyer?
If your bank is refusing to return stolen money to your account, an experienced banking disputes attorney can help protect your rights and advocate for you. As consumer rights lawyers, we have the knowledge and experience you need to fight for your rights and work to recover your funds. If the dispute process does not work, you may need to consider legal action against them.
Do banks return scammed money?
If you get scammed, your bank must open an investigation. If they determine the charges were fraudulent, they must refund your money and remove the charge from your account. However, sometimes, a lack of evidence or error can prevent you from getting your money back. In these cases, working with a banking disputes attorney can significantly affect the outcome of your dispute.
How long does it take a bank to refund stolen money?
After opening an investigation, a bank has 45 days to resolve the issue and refund your money. It is vital that you contact your bank as soon as possible to start the process.
What if the bank won’t return stolen money?
If your bank won’t return money stolen from your account, contact us as soon as possible to discuss your options. In some cases, a bank refusing to return stolen money can violate the Electronic Fund Transfer Act (EFTA), which applies to certain unauthorized electronic transactions in personal bank accounts. Our attorneys have extensive experience in EFTA claims and can help you with your next steps.
Can I get my money back if someone used my debit card?
Typically, banks have to return money to your debit card if someone else used it. However, it is vital that you follow your bank’s fraudulent activity reporting procedures to increase your chances of obtaining a refund. Under federal law, your liability for fraudulent charges on your debit card is $50 if you report the fraudulent activity within two business days. If you wait, you may be liable for $500. If you take more than 60 days, your bank is under no legal obligation to refund your money under federal laws.
Can you sue a bank for not refunding your money?
There are many steps to take with your bank before filing a lawsuit. You may have to file a police report or a report with the FBI, depending on the amount of money stolen. You can also file a complaint with the Consumer Financial Protection Bureau and the Federal Trade Commission. If these steps do not help, you may be able to file a lawsuit under the EFTA or applicable state laws. At SmithMarco, P.C., we can guide you through every step of the process.
What is the difference between wire fraud and ACH fraud?
Wire fraud and ACH fraud differ in the payment systems they use and the laws that govern them. Wire fraud moves funds through direct bank-to-bank wire systems like Fedwire. UCC Article 4A governs wire transfers, and the Electronic Fund Transfer Act (EFTA) generally does not cover commercial wire transfers but may cover certain consumer international remittances.
ACH fraud also moves funds through the Automated Clearing House network. EFTA covers ACH transactions in consumer bank accounts and gives individuals stronger rights to dispute charges and recover losses. Knowing which type of fraud affected your account determines what legal options you have.
Are Zelle payments protected like other bank transfers or transactions?
Zelle payments do not carry the same protections as traditional bank transfers under federal law. EFTA covers unauthorized electronic fund transfers, meaning transactions someone else initiates without your knowledge or permission.
When you send a Zelle payment yourself, even under fraudulent pretenses, federal law classifies the transaction as authorized. If a scammer tricks you into sending money through Zelle, EFTA protections do not apply. When EFTA does not apply, applicable state laws and other legal claims give you additional options for recovery.
What is authorized push payment fraud?
Authorized push payment (APP) fraud occurs when a scammer tricks you into willingly sending money to a fraudulent account. You initiate and authorize the payment, believing the transaction is legitimate. Because you authorize the transfer, EFTA does not cover the loss the way it covers unauthorized transactions.
Scammers carry out APP fraud through impersonation, fake invoices, romance schemes and investment scams. This type of fraud is increasingly common in peer-to-peer payment platforms like Zelle and Venmo. If you sent money to a fraudster, your rights to recover those funds depend on the specific circumstances of the fraud.
What is ATM skimming and is my bank liable?
ATM skimming is a form of fraud where criminals attach hidden devices to ATMs to capture your card data and PIN. Under EFTA, your bank is liable for the unauthorized withdrawals that result from ATM skimming. Criminals use the stolen data to create counterfeit cards and drain your account.
How much your bank covers depends on how quickly you report the fraud. If you report within two business days of discovering the loss, your liability cap is $50. Reporting between two and 60 days after discovering the loss raises liability to $500. After 60 days from receiving your statement showing the unauthorized transfer, you may lose protection for subsequent unauthorized transfers.
Let Us Fight For You
To learn more about your rights and how our banking dispute lawyers can help you, contact us to schedule a consultation. With offices in Chicago, Illinois, and Sarasota, Florida, we can assist clients nationwide with banking disputes. Call us at 888-915-0836 or complete our online contact form to get in touch.