“Here I was being told I was defrauded by a man who was defrauding me.” — A Bank of America customer, after the bank denied his fraud claim (ABC7 7 On Your Side, 2021)
If Bank of America denied your fraud claim with a vague excuse — “you authorized it”, “the chip was read,” “it came from your device,” “a family member must have done it” — that denial may violate federal law. The Electronic Fund Transfer Act (EFTA, 15 U.S.C. § 1693 et seq.) requires banks to investigate reported fraud in good faith. When a bank doesn’t, consumers can recover the stolen funds, statutory damages of $100 to $1,000, attorney’s fees, and — in cases of bad-faith denial — three times their actual losses (15 U.S.C. § 1693f(e)).
You may have been told there was nothing the bank could do. That is not a legal determination, and it is not the end of your rights.
38%. That is the share of disputed unauthorized-transaction claims the three largest U.S. banks actually reimbursed, according to a 2024 U.S. Senate report. If your claim landed in the other 62%, you may have a federal cause of action. This is not a bank that gives consumers the benefit of the doubt: in July 2023, the Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay more than $250 million — roughly $100 million in consumer refunds and $150 million in penalties — for charging junk fees, withholding promised credit-card rewards, and opening accounts without authorization.
“But I authorized it.” Are you still protected?
Bank of America’s most common denial is that you authorized the payment, so it isn’t fraud. Victims hear it constantly — “No, because you used it through Zelle”; “Sorry, you’re out of luck.”
The law is more generous than the script. The CFPB has stated that Regulation E applies “if a third party fraudulently induces a consumer into sharing account access information.” Being tricked into moving your own money is exactly the kind of fraud the EFTA was written to cover. A bank that hides behind “you authorized it” without conducting a good-faith investigation may be violating federal law.
What the EFTA Requires After You Report Fraud
The EFTA protects consumers who use electronic banking — debit cards, ATMs, online transfers, and mobile payments. Once you report an unauthorized transaction, three deadlines bind the bank:
- Investigate within 10 business days. Bank of America must determine whether an error occurred within 10 business days of your report (12 CFR § 1005.11(c)(1)).
- Provisionally credit to buy more time. It may extend its investigation to 45 calendar days only ifit provisionally credits the disputed amount to your account within those first 10 business days (12 CFR § 1005.11(c)(2)).
- Report within 60 days of your statement. You must report the unauthorized transfer within 60 days of the date your statement was sent to preserve full error-resolution rights (12 CFR § 1005.11(b)(1)).
New accounts, point-of-sale debit transactions, and foreign-initiated transfers extend these to 20 business days to investigate and 90 calendar days to resolve (12 CFR § 1005.11(c)(3)).
Three Defenses Bank of America Uses — and Why They Fail
Based on consumer cases handled by Clanton Law Office, Bank of America routinely denies valid fraud claims with three arguments. None satisfies the EFTA’s good-faith-investigation requirement.
The chip-card defense. The bank argues that an EMV chip read proves the cardholder authorized the charge. It doesn’t. Chip cards are stolen, cloned through shimming devices, or used by someone with physical access to the card.
The device / IP-address defense. The bank claims a transfer from your device or IP address was authorized. This fails when your credentials were compromised through phishing, malware, or account takeover.
The family-member assumption. The bank speculates a household member made the transfer and shifts the burden to you. The EFTA does not permit denial based on speculation; the bank must actually investigate.
If Bank of America denied your claim using any of these, the denial may be unlawful.
Damages You Can Recover Under the EFTA
| Damage Type | Amount | Statutory Basis |
|---|---|---|
| Actual damages | Full reimbursement of stolen funds | 15 U.S.C. § 1693m(a)(1) |
| Statutory damages | $100 to $1,000 per action | 15 U.S.C. § 1693m(a)(2)(A) |
| Treble damages | 3× actual loss, for bad-faith denial | 15 U.S.C. § 1693f(e) |
| Attorney’s fees and costs | No out-of-pocket cost to you | 15 U.S.C. § 1693m(a)(3) |
Treble damages are not automatic. Under § 1693f(e), they apply when the bank failed to provisionally credit your account and did not investigate in good faith, or when it knowingly and willfully denied a claim the evidence did not support.
Your liability for unauthorized transfers is capped at $50 if you report within 2 business days of discovery, rises to as much as $500 if you report within 60 days, and is uncapped after 60 days (15 U.S.C. § 1693g). Report fast.
How to Challenge a Bank of America Fraud Denial
- Report immediately, then gather evidence. Report the unauthorized transactions as soon as you discover them. File a police report. Collect the bank’s denial letter, statements showing the unauthorized transactions, and all correspondence with the fraud department.
- Send a written EFTA dispute. Mail a formal dispute letter citing the EFTA (15 U.S.C. § 1693f) by certified mail to Bank of America’s dispute address. Keep copies of everything.
- File a CFPB complaint (optional but useful). Submit a complaint at consumerfinance.gov. It creates an official record and requires the bank to respond.
- Contact an EFTA attorney. A lawyer who handles EFTA cases can evaluate whether the denial violated federal law and pursue damages on your behalf — at no out-of-pocket cost to you.
Why Clanton Law Office
Bill Clanton has been licensed in Texas since 2007 and has nearly 20 years representing consumers in EFTA, FCRA, and consumer-protection matters, through both individual cases and class actions. Clanton Law Office handles EFTA cases on a contingency-fee basis — you pay nothing unless you recover money.
Frequently Asked Questions
The bank says I “authorized” the transfer, so it won’t refund me. Is that right? Not necessarily. The CFPB has stated that Regulation E protections apply when a third party fraudulently induces you into sharing account access. If you were tricked into the transfer, the bank’s “you authorized it” position may not satisfy federal law.
What is the Electronic Fund Transfer Act? The EFTA (15 U.S.C. § 1693 et seq.) is a federal law protecting consumers who use electronic banking. It requires banks to investigate reported errors within 10 business days and to provisionally credit disputed amounts if the investigation runs longer.
How long does Bank of America have to investigate a fraud claim? 10 business days for most accounts; 20 business days for new accounts, point-of-sale, or foreign-initiated transfers. If it cannot finish in time, it must provisionally credit your account and may continue for up to 45 calendar days (90 for the extended categories).
Bank of America gave me a provisional credit and then took it back. Can they do that? A bank may reverse a provisional credit if it concludes no error occurred — but a reversal doesn’t mean the bank investigated correctly. If it failed to provisionally credit within 10 business days, or denied your claim without a good-faith investigation, the reversal itself can support a claim for treble damages under 15 U.S.C. § 1693f(e).
What damages can I recover if Bank of America denied my fraud claim? Actual damages (the stolen funds), statutory damages of $100–$1,000, attorney’s fees and costs, and — when the bank denied in bad faith — treble (3×) your actual loss under § 1693f(e).
What should I do if Bank of America denied my fraud claim? Report it, file a police report, send a written EFTA dispute by certified mail, file a CFPB complaint at consumerfinance.gov, and contact an EFTA attorney for a free case evaluation.
Does Bank of America have to give me provisional credit? Only if it cannot complete its investigation within 10 business days and wants the extended 45-day window. To use that window, it must provisionally credit the disputed amount within the first 10 business days.
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