Q: Can my bank take 90 days to investigate an error even though my account isn't new? Do they have to give me temp credit?
I did a transaction for $795. The merchant claimed they didn't receive payment, but I was charged and my bank says the transaction was successful. I did a 3 way call with the merchant and my bank and it was made very clear that there was an error with the payment from my account. The merchant then charged my account for another $795.
My bank said it can take 90 days to complete it's investigation, a month later I'm still out $1,590. My bank says they are not required to give provisional credit. I reported the issue within the required time & I was not asked to send a written report.
A:
Under the federal Electronic Fund Transfer Act (EFTA) and Regulation E, which also apply in California, your bank generally has 10 business days to investigate an reported error, not 90 days. They must resolve the issue within 3 business days after completing their investigation.
Since you reported the error promptly, the bank should have given you provisional credit within 10 business days while they investigate, unless they believe the dispute is frivolous or irrelevant. The only exception to the 10 day timeline is if your account is new (less than 30 days old), in which case the bank can take up to 20 business days to investigate and credit you provisionally.
So in summary, assuming your account is not brand new, your bank should have provisionally credited you the disputed $1,590 within 10 business days of you notifying them, while they investigate and fully resolve it within 3 days after their investigation (which itself should take no more than 10 business days).
Since it appears your bank is not following these required timelines, I would recommend filing a complaint with the Consumer Financial Protection Bureau (CFPB). You can submit a complaint online through their website. This will prompt the bank to respond promptly. If the bank still fails to resolve the issue, consider speaking with a consumer protection attorney. But start with submitting a CFPB complaint.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
