EFTA Violations

EFTA Violations Need EFTA Lawyers.

At Consumer Justice Law Firm, we help you recover from the harmful consequences of EFTA violations by upholding and protecting your rights under the law. We do everything the law allows to hold financial companies accountable for the reckless way they handle your data.

GET JUSTICE for EFTA Violations!

We fight to make banks and money apps

  1. Fix mistakes, errors, and fraud
  2. Pay you money for any harm they cause
  3. Pay your legal Bill (you pay $0 out of pocket)
Lines represent electronic money transfers and imply EFTA violations can be fought and beat.

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 or other financial account.

Mistakes tied to your bank account or peer-to-peer money apps 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 information about how everyday people in situations just like yours are impacted by EFTA violations, credit reporting errors, and more.

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  • have limits on the total daily funds that can be withdrawn from an account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)

7 Transactions Covered by 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

Know the Difference! The EFTA does not apply to credit card transactions, which are covered separately under the Fair Credit Billing Act (FCBA).

How EFTA Violations Harm You

EFTA violations harm you in two major ways:

(1) An 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 funds that are yours.

(2) 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 snowballs 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 Take After Discovering EFTA Violations

STEP 1 Talk to an EFTA lawyer

You have the legal right to accurate and authentic electronic money transactions and credit reports. Consumer reporting agencies (such as Experian, Equifax, and TransUnion), banks, and the companies that run peer-to-peer money apps all have legal obligations to fight and fix fraud and misreporting. Start with a free consultation to understand your rights and make a plan to fight EFTA violations.

STEP 2 Let the bank 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.

Step 3   File a confirmation of the dispute by mail

Even if your phone call initiates a formal dispute of the transactions, you should confirm your conversation about the EFTA violations and file everything in writing. File by certified mail and keep copies of everything, including the mailing receipts and all documents sent.

Step 4   File a criminal report about EFTA violations

If you’re dealing with 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. If you aren’t already working with a lawyer to battle EFTA violations, you can start at any point in the process.

How An EFTA Attorney Helps

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.

6 Key Things an EFTA Lawyer Knows

  1. 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.
  2. We know the problems. We’ve seen, heard, and handled every type of consumer fraud and credit reporting problem and put our full knowledge and resources into everything we do.
  3. 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.
  4. We know how to provide legal guidance.  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.
  5. We know how to file a strategic lawsuit. If the fraudulent transactions aren’t removed, mistakes aren’t fixed, or the credit reporting errors aren’t corrected, 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
  6. 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 transactions. There are critical statutes of limitations (time limits!) involved in disputing fraud, 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 credit  report 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. Credit bureaus have 30 days to respond.
  • 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.

One of the most important and least known facts about fighting EFTA violations is that you don’t have to pay out of pocket for legal help.

Under the EFTA and FCRA, you are not expected to spend your own money or take on debt just to dispute unauthorized transactions and reporting errors and demand corrections of your data. You didn’t create the problem in the first place, you shouldn’t have to pay to fix it. The law makes the companies who made the problem pay to fix it.

At Consumer Justice Law Firm, we respect this fee-shifting provision for the role it plays in our legal system. It is an equalizer, bringing justice to everyone, including those who otherwise couldn’t afford to work with an attorney. The law has cleverly carved out a way to center equity and fairness in legal representation for consumers harmed by big business errors.

Frequently Asked Questions

Should I file a police report for unauthorized banking transactions?

Yes, if you’re dealing with EFTA violations related to 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.