Fight EFTA Violations with EFTA Lawyers.
No matter what caused errors in your banking data and bank statements, those errors are unlawful.
From unauthorized transactions caused by identity theft and fraud to clerical errors by the bank, misreported payment status, or someone else’s data mixed into yours, the list of what can go wrong is frightening.
Transactions involving banks and peer-to-peer payment apps are protected under the Electronic Funds Transfer Act (EFTA), which gives you the right to transparency and accuracy, and the right to dispute data when those come up short.
At Consumer Justice Law Firm, we help you enforce your legal right to accurate bank statements and banking data. But this doesn’t just mean correcting the record.
It means helping you make a complete recovery, reclaim your financial integrity, fight for fair compensation for any harm you suffered, and empowering you to push back against billion-dollar banking bullies.
In This Guide…
What Is the Electronic Funds Transfer Act?
The Electronic Funds Transfer Act (EFTA) is a federal law that regulates the transfer of money electronically. It gives you legal rights to dispute unauthorized or inaccurate entries or activity.
The EFTA applies to any transaction that is electronic and directly tied to the transfer of money from your bank accounts, peer-to-peer payment apps, or other financial accounts.
Mistakes tied to your bank account have consequences that can spread through your full financial and credit profile quickly. Because of this, EFTA violations are incredibly harmful and require a prompt response.
Check out the Consumer Justice Blog for articles about how everyday people in situations just like yours are impacted by EFTA violations, credit reporting errors, and more.
7 Transactions That Can Have EFTA Violations
The EFTA is very comprehensive and includes EFTA violations occurring in transactions like these:
- point of sale debit card transactions- when you swipe, tap, or insert your ATM/bank card to make a purchase at a store, gas pump, etc.
- ATM transactions- when you withdrawal or deposit money using an ATM, whether at a bank branch or within a retail space
- direct deposits- when you have your paycheck or other monies deposited directly into your bank account using your routing number
- auto pay transactions- when you pay your bills by linking a utility, service, loan account, or more, to your bank account for automatic withdrawals
- peer-to-peer transactions- when you use money apps like Venmo, Zelle, Cash App, PayPal, and others to send or receive money
- online and over-the-phone payments- when you make these payments directly from your bank account or using your debit card
- electronic check conversion- when you use a scanner or reader on your phone or other device to deposit, send, or receive, money from a traditional paper check
The EFTA does not apply to credit card transactions, which are covered separately under the Fair Credit Billing Act (FCBA).
Your Rights Under the EFTA
When it comes to EFTA violations, this federal law gives you the right to
- know all fees associated with the transactions in your accounts, including ATM and overdraft fees
- have limits on the total daily funds that can be withdrawn from an account
- report fraud by phone, email, or even in person at your local bank branch
- dispute unauthorized transactions or incorrect balances and fees (within 60 days or the transaction posting to your billing statement)
- face limited liability for confirmed unauthorized transactions (your limit of liability is tied to how quickly you report the transactions, so act quickly!)
- have the dispute investigated within 10 business days and know the results of the investigation within 3 days
- have the money credited back to your account (minus any amount you’re liable for)
How EFTA Violations Harm You
EFTA violations typically harm you in two waves.
The first wave is the immediate loss of money from your accounts. Whether the money is stolen, lost, or reported incorrectly, EFTA violations mean you do not have access to your funds.
The second wave is the series of continuous, slow-rolling hits that just keep coming when EFTA violations aren’t fixed. For instance, when money goes missing from your account, you may not be able to pay bills, which may cause delinquencies and defaults. This impact of EFTA violations can snowball quickly.
Look for financial injuries like
- Empty accounts. Fraudulent activity or statement errors at their worst lead to bank accounts that are wiped out completely.
- Balance statements riddled with bad data. Having your balances zeroed or shrunken through fraudulent activity or statement errors means your bank statements are wrong.
- Bad credit reports. When your bank statements aren’t corrected following fraud or errors, you typically can’t pay bills. These debts may end up on credit reports, damaging your credit worthiness.
- A credit score drop. The unfortunate companion to an unjust credit report is an unfair, rapidly dropping credit score.
- Debt collections. If you can’t pay off debts, those accounts could unfairly end up in collections.
- Reputational damage. Financial and credit reporting damage rarely stays between you and the agency reporting it. In fact, anyone seeing your credit report while it’s full of data generated by fraud or inaccuracies will assume the worst.
- Mental and emotional distress. Missing out on long-awaited opportunities, losing sleep due to worry, and being plagued by anxiety, are all part of the toll that FCRA violations take.
4 Steps to Fight EFTA Violations
Taking these four steps will help ensure you’re on the best and fastest path to a complete recovery.
Talk to an ETFA lawyer: You have the legal right to accurate and authentic electronic money transactions and credit reports. An EFTA lawyer can clearly explain your rights at the outset, and guide you through the dispute and recovery process, fighting to fix EFTA violations and get compensation.
Let the banks and financial companies know: Carefully review your activity statement from every bank or financial company (like money apps). Note every instance of unauthorized or inaccurate transactions and other EFTA violations, no matter how small. Notify the fraud department as soon as possible.
File a confirmation of the dispute by mail: Even if your phone calls initiate a formal dispute of the transactions, you should confirm your conversation about the EFTA violations and file everything in writing. Some companies don’t consider it a formal dispute unless it’s in writing. File by certified mail and keep copies of everything, including the mailing receipts and all documents sent.
File a criminal report if necessary: If you’re dealing with identity theft or fraud, it’s a good idea to file a police report as close in time to the discovery of the fraud as possible. While the police may not start an investigation, filing a criminal report helps lock down the facts and the timeline.
Even if you didn’t start with a legal consultation, you can work with a lawyer to battle EFTA violations at any point in the process.
What Does a Top EFTA Lawyer Do?
Correcting fraudulent or erroneous transactions and reporting shouldn’t be complicated, but it frequently is.
Working with an experienced EFTA lawyer gives you the best shot at fixing EFTA violations for good. With legal help, you can get your money back and get compensation for any harm to your life, finances, and mental wellbeing.
You can skip the prolonged and painful battles with banks, money apps, and credit reporting agencies and lean into the simple, straightforward solutions you’re looking for.
Here’s how an identity theft lawyer helps:
- We know the law. We know the laws that protect you, including the EFTA, and how to go after these careless banks and mega-corporations using every possible legal option available.
- We know the problems. We’ve seen, heard, and handled every type of consumer fraud and bank statement error and put our full knowledge and resources into everything we do.
- We know the tricks. We know the tactics used by these companies to delay doing anything to fix financial or reporting mistakes. They’d rather convince you it’s a lost cause. We know otherwise.
- We know what you need to win. We help you gather necessary data and evidence, craft and file legally sound disputes, and advise you of your rights and best practices along the way.
- We know how and when to file a lawsuit. If the fraudulent and unauthorized transactions and mistakes aren’t fixed, we file a lawsuit to hold companies accountable for EFTA violations. We might sue companies that
- fail to use adequate methods to prevent, investigate, or correct bad data generated by fraud
- engage in harassment (such as unscrupulous debt collectors) for non-payment of real debts as a result of the fraud
- fail to act within the legal time frame for investigating and fixing disputed transactions and data
- receive notice of fraudulent transactions but continue to report the false information anyway
- avoid returning your money following credible notice of fraudulent or unauthorized transactions
- We know how to get you money. If you’ve been harmed by fraud, errors, and bad data and you’re entitled to compensation, we know how to maximize it. We handle EFTA violations, FCRA violations, and more.
How to Dispute EFTA Violations
- Act quickly to dispute fraudulent, unauthorized, or erroneous transactions. There are critical statutes of limitations (time limits!) involved in disputing these, so you have to act quickly.
- Typically the date that sets everything in motion is the statement date on which the fraudulent transaction is first reported.
- Once you notice something is off, jump into gear getting things locked down and disputed right away.
- Review your credit reports and financial statements for mistakes and unauthorized activity.
- Gather any evidence and documentation you have to support your dispute.
- This should include the police report (if filed) and any communications with the companies (such as notes from when you filed a fraud alert).
- Follow the rules for the specific financial company whose data you’re disputing.
- Write a thorough and clear letter explaining exactly which information in your bank or financial statement is wrong and why.
- Mail your letter, along with copies of the supporting documents, via certified mail to the credit reporting and financial companies.
- This preserves your rights and leaves an easily traceable trail. Avoid using online dispute platforms.
- Keep a copy of the letters and documents for your file, along with the mail receipts.
- Track the days and make sure they respond with the limits set by the EFTA.
- Don’t give up. If they don’t respond, don’t investigate, don’t fix the errors, or claim that their investigation confirmed the bad data and fraudulent activity, you can absolutely fight these EFTA violations. You need a lawyer NOW.
How Much Does an EFTA Lawyer Cost?
If you work with Consumer Justice Law Firm, the answer is simple. It costs you nothing out of pocket to work with an EFTA lawyer.
From your FREE consultation all the way through to the resolution of your claim, including filing a lawsuit if necessary, you don’t pay us a dime up front or out of pocket.
Our EFTA lawyers get paid by the companies we sue when we win. Period.
No Justice, No Fee.TM
Frequently Asked Questions
Should I file a police report for unauthorized banking transactions?
Yes, if you’re dealing with EFTA violations related to identity theft or fraud, you should file a police report. However, if you are just disputing ATM fees with your bank, that would not warrant a police report.
If you have unrecognized and unauthorized transactions on your bank statements, within your money apps, or anywhere tied directly to your actual funds, you should file a police report as soon as possible.
If you are the victim of identity theft and identity fraud, the police may choose to investigate for potential criminal prosecution. And, regardless, the police report can play a key role in ensuring that you recover any stolen money and clear up related errors on your credit reports.
Is PayPal covered under the EFTA?
The EFTA violations related to PayPal can be tricky to figure out. The laws that apply may depend on how you use the app. For instance, if you link your credit cards through PayPal in order to make more secure online purchases, those transactions are not EFTA violations, but may be covered under the Fair Credit Billing Act (FCBA).
However, if you link your bank account to PayPal in order to receive payments for work performed or any other purpose, those transactions would likely fall under the EFTA.
If you have any errors or unauthorized activity through your PayPal account, whether it impacts your credit cards, bank accounts, or both, we can help you sort what counts as EFTA violations. We can help return your finances and credit reports to good, and get you compensation.