Americans rely on digital applications and mobile devices for banking and purchases more than ever before. Most Americans prefer to use electronic payment and billing services rather than visit their local banks physically, and there are countless transactions conducted online every day. When it comes to everything from debit card purchases to paying bills, you have the right to expect accurate and secure transactions every time you conduct any type of business digitally.
The Electronic Fund Transfer Act (EFTA) exists to ensure confidence in digital transactions and provide legal recourse to those affected by poor digital application management. If you have lost money and experienced other damages due to a company’s mismanagement of your personal data, or if you are the victim of a fraudulent transfer of any kind, you likely have grounds to file an EFTA claim against your financial institution.
The Law Office of Quintin G. Shammam has a team of experienced San Diego consumer protection attorneys with years of experience helping our clients overcome the effects of online banking fraud and other legal complications with their electronic fund transfers. If you believe your financial institution or any other party has engaged in fraud, stolen from you, or misrepresented an online transaction in any damaging way, we can help you hold them accountable. The sooner you connect with our team, the sooner we can begin guiding you through the difficult proceedings necessary to ensure accountability, so contact us today [Contact] to learn about the legal services we provide to San Diego clients.
Understanding Your Rights Under the EFTA
As digital commerce has grown more common over the past few decades, the number of incidents of identity theft has also grown exponentially. Identity theft occurs when one party uses the personal information of another party to conduct fraudulent financial transactions. A common example would be using a victim’s personal information to obtain a credit card, using the card for various purchases, and then leaving the victim with the balance.
The EFTA exists to provide legal recourse to those negatively affected by identity theft and any other type of fraudulent transactions. To qualify as a fraudulent transaction, the incident in question must meet three basic criteria:
- An electronic fund transfer was made by a party other than the owner of the account conducting the transfer. If you try to claim that a transaction you completed was an EFTA violation, but it is revealed that you made the transaction, you could face fraud charges and serious criminal penalties if convicted.
- The person making the transfer does not have permission to do so from the account holder. Your financial institution must provide records showing how the transfer in question was conducted, including the devices used to complete the transfer.
- The account holder receives no benefit or positive effect from the transaction. You must be able to prove that the EFTA violation in question resulted in some form of harm.
It is vital to safeguard the details of your financial accounts as closely as possible. For example, if you share your debit card’s PIN with another party and they use the card for purchases you did not approve, the EFTA does not apply to your case because you provided them with the information they needed to conduct the transaction. This is effectively giving them permission. Additionally, the EFTA only applies to digital accounts held by an individual or a family for personal purposes. Business accounts do not qualify for protection under the EFTA.
It is also important to note that the EFTA applies to electronic transfers specifically. If you are the victim of fraud pertaining to any type of payment through check or paper, the EFTA does not apply. The EFTA also does not pertain to wire transfers between two businesses or banks, nor does it apply to any fund transfers for the purchase of securities or commodities or transfers within the same bank that have been authorized by the account holder.
Before the EFTA was implemented, the average person had no real legal recourse if another party took funds from their bank account electronically without their permission. The EFTA now provides protection in the form of repayment of lost or stolen funds and the ability to pursue claims for damages against the parties who engage in these fraudulent transfers. Additionally, any party who willfully violates the EFTA faces criminal prosecution.
Filing Your EFTA Claim in San Diego
It is important to understand that while the EFTA provides you an avenue of recovery when you are the victim of any electronic fund transfer fraud, you are expected to monitor your bank accounts closely and report any fraudulent or unauthorized activity immediately. As long as you report an incident within two days, your liability is limited to $50. If you report the incident within 60 days, your liability is capped at a maximum of $500. Any failure to report an EFTA violation after 60 days could lead to substantial losses and no way of recovering them. These time limits exist to limit incidents of fraud in which someone reports an EFTA violation with the expectation of repayment after they conducted the transaction themselves. It’s possible that the EFTA violation you recently experienced resonates with experiences from other clients of your bank or other financial institution. It’s common for electronic bank fraud [Bank Fraud] to affect multiple victims over a long period of time, so there could be a class action lawsuit already in progress that you would be eligible to join. Your San Diego consumer protection attorney can advise you as to whether this would benefit you or diminish your recovery. Joining a class action in progress typically costs much less in legal fees, but the final award is split among all the plaintiffs, resulting in less individual recovery for each plaintiff.
Your San Diego consumer protection attorney can assist you in not only meeting the reporting requirements you face under the EFTA but also for ensuring that your financial institution meets its EFTA requirements. They are required to secure documentation pertaining to the transfer and must provide you with all relevant records immediately. They may also be required to provide a provisional credit of the amount lost while they investigate, and your attorney will help to ensure you are repaid in full in a timely manner. Your claim may not only yield repayment of the amount taken from you but also compensation for any related damages arising from the incident.
FAQs
Q: Am I Required to Hire an Attorney for an EFTA Claim?
A: You can pursue an EFTA claim without legal counsel if you wish, but do not assume that doing so will yield the same outcome an attorney could ensure in a shorter timeframe. Hiring legal counsel you can trust will make every aspect of an EFTA claim easier to manage. Your case is likely to require various interactions with your financial institution and other entities, and the average person could make mistakes that complicate their recovery.
Q: How Long Does It Take to Finish an EFTA Case?
A: The time required to complete your EFTA case typically depends on the amount of the unauthorized transaction in question, the time it took you to report the transaction to your bank, and whether you have legal counsel advising you. Having legal counsel you can trust handling your case as soon as possible will significantly shorten the time required to complete the claim process and secure the compensation you deserve.
Q: How Much Does an EFTA Attorney Cost to Hire in San Diego?
A: Every consumer protection attorney uses a different billing policy. Always verify the details of a prospective attorney’s billing before you agree to their representation so there are no surprises when it comes to your legal expenses. Some attorneys charge hourly rates, while others offer flat rates for compartmentalized legal services. If you are filing a civil claim for damages, your attorney may offer to take the case on contingency, taking a percentage of your final award in lieu of ongoing hourly fees.
Q: What Are the Penalties for an EFTA Violation?
A: If another party is found guilty of performing an unauthorized electronic fund transfer through your account in violation of the EFTA, they face a wide range of penalties, including repayment of the amount taken from you plus statutory damages, fines, and possibly incarceration. Your attorney may also help you seek compensation for your legal expenses, so the defendant will be responsible for the cost of bringing your claim along with all the various economic losses they may have caused.
The Law Office of Quintin G. Shammam has the resources you need on your side to approach an EFTA violation case with confidence and peace of mind. Our firm has years of experience helping San Diego clients navigate their EFTA cases efficiently, and our goal in every case we accept is to help our client recover as fully as possible as quickly as possible. Time is a critical issue for anyone who has experienced an EFTA violation in San Diego, so contact our team as soon as possible to schedule your consultation with a San Diego consumer protection attorney you can trust with your case.