Reg E Unauthorized EFT Protections — Limit Liability for Fraudulent Bank and Debit Transfers
What Is It?
Regulation E protects consumers from unauthorized electronic fund transfers from bank accounts, including debit card transactions, ACH debits, and some other EFTs.
What Most People Don’t Know
- Reporting speed changes your liability dramatically.
- Debit-card fraud and credit-card fraud are governed by different rules.
- The bank must investigate reported errors under Regulation E.
- If the bank takes longer to investigate, it may have to issue provisional credit.
Frequently Asked Questions
Is my liability automatically unlimited if my debit card was used fraudulently?
A: No. Regulation E places liability limits that depend heavily on how quickly you notify the institution.
Does the bank have to investigate?
A: Yes. Regulation E includes procedures for resolving EFT errors.
Can I get provisional credit before the investigation is finished?
A: Sometimes yes. Regulation E includes provisional-credit rules when the bank takes longer to complete the investigation.