What to Do when You Notice an Electronic Fund Transfer Error

The electronic fund transfer system is used by every bank in the financial industry today. This system allows individuals to transfer money electronically from their bank account to another account with the use of a debit card, online or bill pay. While this system is commonly used, and is generally effective, it does have errors, from time to time. Here are a few things for you to consider when you notice a mistake with an electronic fund transfer.

Electronic Fund Transfer 

The EFT system is one of the most common ways that payments are made today and chances are that you use this system on a daily basis, without any problems. Anytime that you swipe a debit card, or withdraw money from the ATM, you are using electronic fund transfer. When you use this system, you should get a receipt for the transaction. This helps you prove that a transaction took place. The electronic fund transfer system is governed by the Electronic Fund Transfer Act. This legislation is designed to shed some light on the possibilities of consumers and financial institutions when using this system. 

Review Statements

In order to make sure that there are no mistakes with your account, you need to review your statements as frequently as possible. Many banking institutions allow you to access your account online in real-time. When you check this, you will be able to see if there are any mistakes in your account.

Quick Response

When you are looking at your account statement and you find an error, you need to contact your financial institution as quickly as possible. According to the rules of the Electronic Fund Transfer Act, you have 60 days to report the error. If you wait beyond the 60 day window, the bank will not be able to fix the problem for you. In most cases, you should find out about the error much sooner than 60 days. In that case, you need to get in touch with your bank as soon as you find out. You can notify them in writing or you can call them on the phone. 

Provide Information

When you contact your bank, you need to provide them with all of the necessary information surrounding the error. You need to give them all of your personal information including your name, Social Security number and your account number. You also need to tell them all about the transaction that is in question and give them the total amount of the error. In some cases, your bank will ask you to provide all of this information in writing to them within 10 days. 

Investigation

Once you have supplied the bank with the proper information, they have to do an investigation into the matter. They have 45 days to conduct a full investigation. If the investigation takes longer than 10 days, they have to credit your account with the amount that is in question. After the investigation, they will provide you with the findings and rectify the situation if there was a valid error.


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