Wells Fargo Unauthorized Transfers and the Electronic Funds Transfer Act (EFTA) | Bill Clanton

Wells Fargo Unauthorized Transfers and the Electronic Funds Transfer Act (EFTA)

Looking at your banking app in disbelief, learning your bank account has been emptied by a hacker. Here are your next steps.

As one of the largest banks in the United States, Wells Fargo handles millions of electronic funds transfers (EFTs) daily. But what happens when a bank processes an unauthorized transfer, leaving your account drained of funds? If you’ve found yourself in this situation, you’re not alone. Wells Fargo has been sued more than any other bank for violating the Electronic Funds Transfer Act (EFTA)—a federal law designed to protect consumers from unauthorized electronic transactions.

Understanding the Electronic Funds Transfer Act (EFTA)

The Electronic Funds Transfer Act (EFTA) is a federal law that outlines the rights and protections consumers have when they conduct electronic transfers of funds, such as debit card transactions, direct deposits, ATM withdrawals, online transfers, and preauthorized payments. Under the EFTA, banks like Wells Fargo must ensure that only authorized transfers are completed and must investigate unauthorized transactions when reported.

If Wells Fargo processes an unauthorized transfer from your account, the EFTA gives you the right to dispute the transaction, demand an investigation, and potentially recover your lost funds.

Common EFTA Violations by Wells Fargo

Wells Fargo has faced numerous lawsuits for failing to comply with the EFTA. Some of the most common violations include:

  • Unauthorized Electronic Transfers: Money withdrawn or transferred from your account without your consent or knowledge.
  • Failure to Investigate: Wells Fargo’s refusal or delay in investigating disputed charges within the required time frame (typically 10 business days).
  • Negligent Security Practices: Wells Fargo’s inadequate protection of your account, leading to fraud or unauthorized withdrawals.
  • Refusing to Reimburse: Wells Fargo denying your claim for reimbursement after an unauthorized EFT, even when your claim is valid under the EFTA.

If any of these violations sound familiar, you may have a legal case against Wells Fargo for unauthorized transactions or bank transfer fraud.

Your Rights Under the EFTA: What Wells Fargo Doesn’t Want You to Know

Under the Electronic Funds Transfer Act, Wells Fargo is legally required to investigate any unauthorized transactions you report. Here are your rights under the EFTA:

  1. Report Unauthorized Transactions: You must report unauthorized EFTs to Wells Fargo within 60 days of receiving your statement showing the error.
  2. Investigation Period: Wells Fargo has 10 business days to investigate your claim. In some cases, they may extend the investigation to 45 days but are required to issue a provisional credit to your account within the initial 10-day period.
  3. Reimbursement: If Wells Fargo finds that the transfer was indeed unauthorized, they must reimburse the amount. If they refuse or delay, you may have grounds to file a lawsuit.

How to Dispute Unauthorized Transactions with Wells Fargo

If you notice an unauthorized transaction in your Wells Fargo account, here’s what to do:

  1. Contact Wells Fargo Immediately: Call the customer service line or visit a local branch to report the transaction. Ensure you document the interaction and keep any receipts or confirmations.
  2. Submit a Written Dispute: Even if you’ve reported the issue verbally, it’s essential to send a written dispute to Wells Fargo within 60 days of discovering the unauthorized transfer.
  3. Monitor the Investigation: Wells Fargo is required to complete its investigation promptly. If they fail to act within the legal time frame or refuse to reimburse you for the unauthorized transfer, it’s time to seek legal help.

When to Contact a Lawyer for Wells Fargo EFTA Violations

When Wells Fargo fails to honor your rights under the EFTA—whether by refusing to investigate your claim, denying a valid dispute, or delaying the return of your funds—you may need to pursue legal action. An experienced EFTA attorney can help you recover your lost funds, hold Wells Fargo accountable, and ensure that the bank follows the law in handling consumer disputes.

Signs You May Need an Attorney for a Wells Fargo EFTA Claim:

  • Wells Fargo refuses to reimburse you for an unauthorized transfer, despite having clear evidence.
  • The bank’s investigation takes longer than 45 days without provisional credit to your account.
  • Wells Fargo claims you were negligent, such as falling for a phishing scam, to deny your claim.
  • You have multiple unauthorized charges or ongoing issues with fraudulent transactions in your Wells Fargo account.

How We Can Help

As a consumer protection law firm, we help clients recover from unauthorized transactions and bank transfer fraud under the Electronic Funds Transfer Act. We have extensive experience in handling claims against major banks like Wells Fargo and can assist you with the dispute process and, if necessary, pursue litigation to recover your funds.

Why Choose Us for Your Wells Fargo EFTA Case?

  • No Upfront Fees: We take EFTA cases on a contingency basis, meaning you don’t pay unless we recover money for you.
  • Experienced Consumer Protection Attorneys: We’ve handled numerous cases involving Wells Fargo and other banks that violate consumer rights under the EFTA.
  • Focused on Your Rights: We are committed to fighting for your rights and holding Wells Fargo accountable for unauthorized transfers and other banking errors.

Contact Us Today for a Free Consultation

If Wells Fargo has denied your claim or mishandled your unauthorized transfer dispute, don’t wait—contact us today. Our team of dedicated EFTA attorneys can evaluate your case, explain your legal options, and help you take the necessary steps to protect your financial well-being.

Take action now by calling our office or filling out our online contact form to schedule your free consultation. Let us fight for your rights and recover what Wells Fargo owes you.

Our research on federal court filings shows Wells Fargo has been sued under the EFTA more than any other bank. We are ready to add to those numbers, call us today to get the justice you deserve.

About The Author

Bill Clanton

Over the years my office has helped thousands of consumers who were cheated, ripped-off, and mistreated by debt collectors, credit reporting agencies, banks, credit unions, and car dealers. If you have a problem with a business being dishonest with you give me a call. I’d love to set them straight.