Banking errors can be frustrating and sometimes financially damaging. Whether it’s an unauthorized charge, a duplicate transaction, or a mistaken withdrawal, consumers in New Jersey have the right to dispute errors and seek resolution under both federal and state laws. Knowing how to respond to a banking mistake—and understanding your legal rights—can help you protect your money and credit.
This post outlines the most common types of bank errors, your rights under New Jersey and federal law, and how to properly file a dispute.
What Counts as a Bank Error?
A banking error can occur for many reasons—technical glitches, human mistakes, or even fraudulent activity. Common examples include:
- Unauthorized transactions or charges
- Duplicate charges or withdrawals
- Deposits into the wrong account
- Errors in loan payments or interest rates
- ATM dispensing the wrong amount of cash
- Incorrect fees or service charges
No matter the cause, it’s important to act quickly to prevent further issues or financial harm.
Your Rights Under Federal Law
The Electronic Fund Transfer Act (EFTA) protects consumers who use electronic banking services, including debit cards, ATMs, and online transactions. Under the EFTA:
- You have 60 days from the date of the bank statement to report an error
- Once you report it, the bank has 10 business days to investigate
- If the investigation takes longer, the bank must provisionally credit your account
- The bank must resolve the error within 45 days (or 90 days in certain cases)
You must report the error in writing after initially notifying the bank, especially if you want to preserve your legal rights.
New Jersey Consumer Protections
While most error resolution laws fall under federal jurisdiction, New Jersey’s Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) can apply if a bank engages in deceptive or unfair practices related to transactions or account handling.
Additionally, the New Jersey Division of Banking and Insurance (DOBI) oversees financial institutions and can accept complaints from consumers regarding banking misconduct or unresolved disputes.
How to Dispute a Bank Error
If you notice a mistake on your bank account or transaction history:
- Act quickly – Report the issue as soon as you spot it, ideally within 60 days.
- Contact the bank – Call or visit your local branch, and follow up with a written dispute.
- Include key details – Note the date, amount, transaction ID, and explanation of the error.
- Keep records – Save copies of all correspondence and responses from the bank.
- Request written confirmation – Ask the bank to confirm their investigation and findings in writing.
If the bank fails to resolve the issue, you can escalate your complaint to federal or state regulators.
Where to File a Complaint
If your dispute is unresolved, consider filing a formal complaint with one of the following agencies:
- Consumer Financial Protection Bureau (CFPB) – www.consumerfinance.gov
- New Jersey Division of Banking and Insurance – www.nj.gov/dobi
- Office of the Comptroller of the Currency (OCC) – for national banks
- Federal Reserve Consumer Help Center
Each agency has an online complaint form and offers tracking and updates on your case.
Conclusion
Bank errors can happen, but consumers in New Jersey are not powerless. Whether the issue is a small fee or a large unauthorized withdrawal, laws are in place to protect your financial rights. Acting promptly, keeping records, and knowing where to turn for help can make all the difference. If you’re unsure about how to proceed or your bank refuses to cooperate, consider speaking with a consumer rights attorney to explore your legal options.