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§6.06 Electronic Fund Transfers—Error Resolution

Lesson 6:
Checks & EFTs

The Act prescribes procedures for resolving account errors. [15 USC §1693f; 12 CFR §205.11.] “Errors” include [15 USC §1693f(f); 12 CFR §205.11(a)]:

  • An unauthorized EFT,
  • An incorrect EFT to or from the consumer’s account,
  • The omission of an EFT from a periodic statement,
  • A computational or bookkeeping error by the financial institution, or
  • The consumer’s receipt of an incorrect amount of money from an ATM.

Once a consumer notifies a financial institution of an error, the institution must promptly investigate and determine whether the error occurred within 10 business days, and then report the results of the investigation to the consumer within three business days after completing the investigation. [15 USC §1693f(a); 12 CFR §205.11(c)(1).]

If the institution determines that an error occurred, the institution must correct the error within one business day after making the determination, including the crediting of any interest. [15 USC §1693f(b); 12 CFR §205.11(c)(1).] If the institution is unable to complete its investigation within 10 business days, it may take up to 45 days if, within 10 business days of receiving a notice of error, the institution provisionally recredits the consumer’s account for the amount alleged to be in error pending the conclusion of its investigation, among other requirements. [15 USC §1693f(c); 12 CFR §205.11(c)(2).] Additional time extensions may apply. [See 12 CFR §205.11(c)(3).]

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