Thousands Vanished from Jennifer’s Bank Account. Santander Said It Was Her Fault.
One morning, Jennifer, a woman in Boston, looked at her bank statement and saw a transaction she didn’t recognize: a nearly $3,000 charge from “SP Midwest Retail Prop” in Missouri.
She told her bank, Santander. The bank gave her provisional credit. But after an “investigation,” the bank claimed she had authorized the mysterious charge—and took back the money.
When she asked for evidence, the bank claimed she had ordered several security cameras.
The kicker? Midwest Retail Prop doesn’t sell cameras. They manage shopping centers.
“How do people fight this?” Jennifer kept asking herself. “I was completely at the mercy of the bank just saying it’s not fraud.” (story reported here)
It’s outrageous. But it’s not unusual.
You Have Rights Under Federal Law. Your Bank Just Won’t Tell You.
Jennifer’s story isn’t rare. Every day, people across the country find unauthorized charges, missing money, or fraudulent transfers, and then face the same cold response: “It’s not our responsibility.”
That’s not just wrong. In many cases, it’s illegal.
Federal law protects consumers from exactly this kind of electronic theft. It’s called the Electronic Fund Transfer Act (EFTA), and it gives you clear rights when money is taken from your account without your permission.
Here’s what you need to know:
EFTA covers most electronic transactions involving your bank account. That includes:
- Debit card purchases
- ATM withdrawals
- Direct deposits
- Online bill payments
- Transfers using apps like Zelle, Venmo, Cash App, and others
If someone else made a transaction without your permission, the law may be able to protect you.
Deadlines Matter
Under the Electronic Fund Transfer Act, time is not on your side.
If you spot an unauthorized transaction, you need to report it to your bank within 60 days of when the bank sent the statement showing the error. If you wait longer, you could lose your right to recover the money, even if the charge is clearly fraudulent.
Once you report the problem, the bank has 10 business days to investigate. If it can’t complete the investigation within that time, the bank is supposed to provisionally credit your account, so you’re not left in the lurch.
These deadlines exist for a reason. But banks often ignore them or apply them unfairly. Some will delay your report on purpose or make you jump through hoops, hoping you’ll give up. That’s why it’s important to document everything and why it helps to have someone in your corner who knows the rules.
About the Author
Angel E. Reyes is a former federal enforcement attorney at the Consumer Financial Protection Bureau and the Federal Trade Commission. After bringing enforcement actions against the largest U.S. companies, which resulted in over $100 million returned to consumers, he left the government to open Power to the People Law PLLC. This law firm focuses on protecting people’s homes and bank accounts.
Disclaimer
Informational only. Attorney advertising. Not legal advice.