My bank won't refund an unauthorized charge — what to do

The law that protects you: EFTA and Regulation E

The Electronic Fund Transfer Act (EFTA) and its implementing rule, Regulation E, cover unauthorized debit-card transactions, ACH withdrawals, online transfers, P2P payments routed through your bank, and ATM withdrawals. If you didn't authorize it, the bank is generally on the hook — not you.

Your liability is capped (if you report on time)

• Within 2 business days of learning about the unauthorized transfer: max $50 liability.
• 2–60 days: up to $500.
• After 60 days from the statement: you can be on the hook for everything that happened after the 60-day window — so report fast.

Step 1: Notify the bank — in writing

Call to start the clock, then immediately send a written notice (email through secure messaging counts; certified mail is better). State the transaction date, amount, and that it was unauthorized.

Step 2: The bank has hard deadlines

• 10 business days to investigate. If they need more time, they have to give you provisional credit while they investigate (up to 45 days total, 90 for new accounts and certain transactions).
• 3 business days after finishing the investigation to credit your account if they find the transfer was unauthorized.
• If they deny, they owe you a written explanation and copies of the documents they relied on — you just have to ask.

The common excuses — and why they're often wrong

• "You used your PIN, so it must be you." Wrong. PIN use isn't proof of authorization, especially if the card was skimmed, cloned, or used by someone who shoulder-surfed your PIN.
• "You authorized the first charge, so the recurring ones are on you." Wrong if you revoked authorization or never agreed to the renewal terms.
• "A family member did it, so it's not unauthorized." Only true if you gave them ongoing access. A one-time grab usually still counts as unauthorized.
• "You got scammed into sending it, so it's authorized." A gray area — but Reg E has been expanding to cover certain fraud-induced transfers, and many state laws go further.

When you have a lawsuit

• Bank missed the 10-day deadline and didn't issue provisional credit.
• Bank denied without a real investigation.
• Bank refused to send you the documents they relied on.
• Bank reversed the provisional credit without proper notice.
• Bank kept reporting the disputed amount to a credit bureau or to ChexSystems.

EFTA gives you actual damages, statutory damages up to $1,000, and attorney's fees — paid by the bank if you win.

What to send a lawyer

• Statements showing the unauthorized transactions.
• The dispute notice you sent, and any bank response.
• Any letters denying your claim.
• A short timeline: when you noticed, when you reported, what the bank said.