How Long Can a Bank Take to Resolve a Dispute?

Question from Jen, How Long Can a Bank Take to Resolve a Dispute?

Answer from AI:

When you file a dispute with your financial institution in the United States, the timeline for resolution can vary based on several factors, including the type of account involved and the nature of the dispute. Here’s a general overview of what you can expect:

Regulations Governing Dispute Resolution

In the U.S., the resolution of disputes involving financial institutions is primarily governed by the Electronic Fund Transfer Act (EFTA) and the Fair Credit Billing Act (FCBA). These laws set forth specific timelines and procedures that banks and credit card issuers must follow when handling disputes.

Electronic Fund Transfer Act (EFTA)

The EFTA applies to disputes involving electronic transactions, such as debit card transactions. Under the EFTA:

• The financial institution must investigate the dispute within 10 business days of receiving your notice.
• If they need more time, they can take up to 45 days to complete the investigation, but they must provisionally credit your account within the initial 10 business days.
• For new accounts (open for less than 30 days), the bank may take up to 20 business days to provisionally credit your account.

Fair Credit Billing Act (FCBA)

The FCBA applies to credit card transactions. Under the FCBA:

• The creditor must acknowledge your dispute within 30 days of receiving it.
• The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your dispute.

Steps to Take if the Dispute is Delayed

If your financial institution is taking longer than expected to resolve your dispute, consider the following steps:

1. Contact the Institution: Reach out to your bank or credit card issuer to inquire about the status of your dispute. Keep records of all communications.
2. Review Your Rights: Familiarize yourself with your rights under the EFTA and FCBA. You can find more information on the Consumer Financial Protection Bureau’s website.
3. File a Complaint: If you believe your rights are being violated, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
4. Seek Legal Advice: If the issue remains unresolved, consider consulting with a legal professional who can provide personalized advice based on your specific situation.

When to Consult a Legal Professional

If your dispute involves a significant amount of money, complex issues, or if you feel that your rights under the EFTA or FCBA are not being honored, it may be beneficial to seek legal advice. A legal professional can help you understand your options and take appropriate action.

Remember, while this information provides a general overview, each situation is unique. For personalized advice, it’s always best to consult with a legal professional.