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What to Do When Your Bank Won’t Refund an Unauthorized Charge (EFTAGuide)

By Story Law Group — Consumer Justice Law Firm, Jacksonville Beach, Florida

Unauthorized bank withdrawals and debit card charges happen every day — and far more often than most people realize. But here’s the good news: federal law gives you powerful protections, and your bank is required to follow strict rules when money leaves your account without your permission.

The law that protects you is called the Electronic Funds Transfer Act (EFTA) — and if your bank refuses to refund a fraudulent or mistaken transaction, you may have a legal claim that forces them to fix it.

In this post, we’ll break down how EFTA works in plain English, what your bank must do, and what steps to take if they’re trying to blame you for something you didn’t do.

⭐ What Is the Electronic Funds Transfer Act (EFTA)?

The Electronic Funds Transfer Act, also known as Regulation E, is a federal consumer protection law that governs nearly all electronic transactions involving your bank account.

This includes:

EFTA’s purpose is simple:
Protect consumers from unauthorized transactions and bank errors.

⭐ Common Examples of EFTA Violations

Most people have never heard of EFTA — but they’ve almost certainly experienced something it covers. Here are typical problems consumers call our office about:

✔ Unauthorized debit card charges

You check your account, and there’s a purchase you never made.

✔ Online banking transfers you didn’t authorize

Money moved between accounts or sent out without your permission.

✔ Stolen card use

You lost your card, and someone drained your account.

✔ Recurring withdrawals you tried to cancel

You told the company to stop. They didn’t.
Worse — the bank still allowed it.

✔ Bank refusing to refund an obvious fraud

Banks frequently say:

“You authorized this transaction.”
Even when you didn’t.

✔ Bank never investigated your dispute

This alone can violate federal law.

If any of these sound familiar, you may have a case under the Electronic Funds Transfer Act.

⭐ What Your Bank MUST Do Under EFTA

If you report a suspected unauthorized transaction, your bank must:

✔ Accept your dispute (verbally or in writing)

They cannot refuse to take your claim.

✔ Investigate promptly

Most investigations must be completed within 10 business days.

✔ Provide a written explanation

They must tell you what they found and why.

✔ Issue a provisional credit (in many cases)

If the investigation will take longer than 10 days, they may have to temporarily return the money to your account.

✔ Correct the error if they confirm fraud

And they must notify you when they do.

If the bank didn’t follow these steps, they may be in violation of federal law — even if they ultimately denied your claim.

⭐ How Much Can a Consumer Recover Under EFTA?

EFTA allows consumers to recover:

This means you don’t pay us anything upfront.
If we don’t recover money for you, you owe nothing.

⭐ What to Do If Your Bank Won’t Refund an Unauthorized Charge

If you have a suspicious transaction or your bank denied your claim, here’s what to do:

1. Report the issue immediately

Call your bank and tell them it’s unauthorized.
Then follow up in writing — this creates a paper trail.

2. Request a copy of their investigation

Banks rarely provide this unless you ask.

3. Gather evidence

Keep screenshots, texts, emails, and statements.

4. Document every conversation

Write down names, dates, and times.

5. Contact an EFTA attorney

Banks deny valid claims every day — especially when the amounts are small.
Having a lawyer forces them to take your case seriously.

⭐ Why Banks Wrongfully Deny Legitimate Claims

It surprises many people, but banks frequently deny EFTA claims even when the consumer is clearly right.

Why?

Because:

But when a lawyer gets involved, everything changes.

Banks know that violating Regulation E can lead to lawsuits, penalties, and paying your attorney’s fees. That’s why consumers represented by attorneys often see very different results.

⭐ How Story Law Group Helps

At Story Law Group, we represent consumers in Electronic Funds Transfer Act cases across Florida. We handle:

And:

You pay nothing unless we recover for you.

We take EFTA cases on a contingency fee — the bank usually pays the attorney’s fees.

⭐ Final Thoughts: Don’t Let the Bank Blame You

Just because the bank claims you “authorized” the charge doesn’t make it true.
Just because they said “the investigation is closed” doesn’t mean it was legal.
Just because they refunded some money doesn’t mean they handled it properly.

You have rights — stronger than you realize.

If your bank allowed money to leave your account without your permission or refused to refund an unauthorized charge, we can help.

⭐ Free EFTA Case Review — Get Answers Today

If you think your bank violated the Electronic Funds Transfer Act:

Call us
Send us your statements
Let us review the evidence

There is no cost and no obligation — and most importantly, you may be entitled to compensation.

Story Law Group — Consumer Justice for Florida Consumers

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Top 10 Most Common Electronic Funds Transfer Act (EFTA) Violations (And How to Protect Yourself)

By Story Law Group — Consumer Justice Law Firm, Jacksonville Beach, Florida

Most people have never heard of the Electronic Funds Transfer Act (EFTA) — but almost everyone has experienced something it protects against. When a bank lets money leave your account without permission, fails to investigate your dispute, or ignores your written request to stop a withdrawal, that can be an EFTA violation.

These violations are far more common than banks want consumers to know.

Below are the Top 10 most frequent EFTA and Regulation E violations, explained in plain English, along with what you can do if any of them have happened to you.

1. Bank Refuses to Refund an Unauthorized Debit Card Charge

This is the violation we see most often.

You check your account and see a charge you didn’t make. You report it.
The bank says:

“You authorized it.”
Or:
“There’s nothing we can do.”

❌ Illegal.
Under EFTA, any unauthorized electronic funds transfer must be investigated — and often refunded.

2. Bank Never Investigates Your Fraud Claim

Banks frequently “deny” a claim without doing an actual investigation. Common red flags include:

If the bank didn’t truly investigate, they likely violated Regulation E.

3. Bank Takes Too Long to Investigate (Past the Legal Deadline)

EFTA gives banks 10 business days to investigate most disputes (20 in some cases). If they take longer, they usually must:

If they blow the deadline, that’s a violation — even if they later deny the claim.

4. Bank Doesn’t Provide a Provisional Credit

If the bank needs more time to investigate, they often must temporarily credit your account.

Failing to do so is one of the most straightforward EFTA violations.

5. Unauthorized ACH Withdrawals (Recurring Charges You Tried to Stop)

This includes:

If you revoked authorization in writing, the bank must stop the transfer.

If they don’t? EFTA violation.

6. Bank Processes Withdrawals After You Revoked Authorization

Even if you tell the merchant to stop, you should ALWAYS tell your bank too.

Your bank must honor your request.
If it doesn’t — you may have a strong EFTA claim.

7. Bank Wrongly Claims You Waited “Too Long” to Report the Fraud

Banks often tell consumers:

“You didn’t report this within 60 days. We can’t help you.”

This is misleading.

Yes, there are time limits — but banks frequently misuse them to deny valid claims. Many withdrawals remain protected even after the 60-day window.

Letting the bank blame you is a classic EFTA violation tactic.

8. Bank Blames You for Card Theft or Lost Card Use

You lose your card.
Someone drains your account.
The bank says:

“You should have been more careful.”

No.
If you reported the loss quickly, your liability is heavily limited.
Federal law does not allow the bank to simply push the loss onto you.

9. ATM Errors (Wrong Amounts, Duplicate Withdrawals, Failed Dispenses)

ATM errors include:

If the bank refuses to correct the error — or refuses to investigate — it may violate EFTA.

10. Bank Fails to Provide Legally Required Disclosures

Banks must provide clear disclosures about:

If they fail to disclose this properly, it can strengthen your legal claim significantly.

⭐ Bonus Violation: Bank Ignores Written Dispute Letters

Under EFTA, written notice triggers strong protections — especially for recurring debits and ACH withdrawals.

Banks must respond.
If they don’t?
That’s a violation.

When Banks Break the Rules, You May Be Entitled to Damages

Consumers may recover:

And because EFTA includes fee-shifting, you pay nothing upfront.
If we don’t recover for you, you owe us nothing.

⭐ What To Do If You Think Your Bank Violated EFTA

✔ 1. Report the problem immediately

Call the bank and follow up in writing.

✔ 2. Save everything

Statements, screenshots, emails, denial letters.

✔ 3. Document communication

Write down dates, names, and employee statements.

✔ 4. Do NOT accept the bank’s first denial

Banks deny legitimate claims all the time.

✔ 5. Contact an EFTA attorney

We know the deadlines, the regulations, and how to force banks to comply.

⭐ We Help Consumers Fight Back — No Upfront Fees

At Story Law Group, we represent consumers across Florida in EFTA and Regulation E cases involving:

If your bank let money leave your account without authorization — or refused to fix an error — you don’t have to face them alone.

⭐ Free Case Review — Story Law Group

Think your bank violated the Electronic Funds Transfer Act?

We review your documents for free
You pay nothing unless we recover
We fight banks so you don’t have to