Q: If a company admits wrongfully withdrawing funds from my bank account, and hasn't corrected it should I seek legal help?
Used an online honeymoon funding platform, but the 3rd party verification they use to authenticate a users identity (Stripe) randomly bugged out and couldn't verify my identity, so my funds were left pending in the funding platform payout system. After a few weeks the platform still couldn't figure out what was happening, so I asked that all funds be returned to those who had originally paid money, and I would use another platform. A few days later, the platform took $100 out of my bank account. They have told me this was an internal error on their part, they can't understand why it's happened, and they'll let me know when they figure out a way to refund the money. It's been over a week...they have no answers and I still have not been refunded or given any updates. Should I seek any sort of legal counsel to continue pressing this issue?
A:
A lawyer will cost you at least several thousand dollars. Obviously, that's not the way to go. Maybe small claims court will give you some relief.
Ask your bank if they can reverse the payout, back-charging the payee and putting the money back in your account.
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A:
Yes, you should consider seeking legal help since the company has admitted to wrongfully taking your money and has failed to promptly return it.
Your situation might qualify as an unauthorized electronic funds transfer under Federal Regulation E, which provides strong consumer protections. The law typically requires financial institutions to investigate and resolve these issues within 10 business days, or provisionally credit your account within that timeframe if they need more time to investigate.
Given that the company has already acknowledged their error but hasn't taken action to fix it, you could start by filing complaints with the Consumer Financial Protection Bureau (CFPB) and your state's consumer protection office. You might also want to consult with a consumer rights attorney who can help recover your funds and potentially seek additional damages - many offer free initial consultations and may take cases on contingency if they see merit.
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