Bank and Credit Card Error Lawyer, Texas & Alabama

What should I do about an unauthorized charge or an error on my account?

Report the problem immediately. For a debit card, ATM transaction, or other electronic transfer, you can give notice orally or in writing, but it is smart to follow up in writing and keep a copy. The Electronic Fund Transfer Act, 15 U.S.C. § 1693 et seq., and its Regulation E require the bank to act on your notice, and how fast you report affects how much you can be made to pay. For a credit card billing error, send a written dispute to the billing-error address shown by the issuer within 60 days of the statement that showed the error; that process comes from the Fair Credit Billing Act, part of the Truth in Lending Act (15 U.S.C. § 1666; Regulation Z, 12 C.F.R. § 1026.13). John C. Hubbard helps consumers in Texas and Alabama use these laws when a bank or card company will not make it right.

What is the difference between debit card and credit card protections?

They run under two different laws. Debit cards, ATM cards, and bank transfers fall under the Electronic Fund Transfer Act and Regulation E, where your liability for unauthorized transactions depends largely on how fast you report the problem. Report quickly and your exposure is capped low; wait and it can climb. Credit cards fall under the Truth in Lending Act and the Fair Credit Billing Act, where liability for unauthorized use is capped at $50 (15 U.S.C. § 1643), and the billing-error process (15 U.S.C. § 1666) lets you dispute and withhold payment on the disputed amount while the issuer investigates.

How long does my bank or card company have to investigate?

Under Regulation E, a bank generally must investigate a reported error within a set period after you notify it, and in many cases must give you a provisional credit while it looks into it. Under the Fair Credit Billing Act, a credit card issuer must acknowledge your written dispute and resolve it within two billing cycles, and no later than 90 days, and while the dispute is open it cannot report the disputed amount as delinquent, though it may report that the amount is disputed and may still report delinquency on other amounts you have not paid. If your bank or issuer blows the deadlines or only pretends to investigate, that can be a violation.

What can I recover if the bank or card company breaks the law?

It depends on the facts. The EFTA and TILA both let consumers recover actual damages, certain statutory damages, and attorney fees and costs when a company violates the law. That fee-shifting is what makes it possible to hold a large bank accountable over an amount that would never justify a lawsuit on its own. Every case is different, and the value of any claim turns on what actually happened to you.

What does it cost to talk to a lawyer about this?

The first conversation is free. Because these consumer-protection statutes shift fees to the company when it loses, many of these cases can be handled without you paying attorney fees out of pocket. John will explain exactly how fees and costs would work in your situation before you decide anything.

This page is general information, not legal advice, and reading it does not create an attorney-client relationship. Deadlines and outcomes depend on the specific facts of your situation. For advice on your situation, have it reviewed by a licensed attorney.

Written by John C. Hubbard, attorney admitted in Alabama (2008) and Texas (2018).