Rules governing electronic fund transfers to consumer accounts impose a structured process when a consumer asserts an error, including an unauthorized transfer.

Notice. A consumer must notify the institution within sixty days of the statement showing the error. Oral notice is sufficient to trigger duties, though written confirmation may be required.

Investigation timelines. The institution generally has ten business days to investigate and report, extendable to forty-five if provisional credit is given within ten. Longer periods apply to new accounts, point-of-sale and foreign transactions.

Provisional credit must be granted where the extended period is used, and the consumer notified.

Consumer liability for unauthorized transfers is capped, with the cap depending on how promptly the consumer reported loss of an access device. Institutional attempts to shift more liability by contract are ineffective.

Findings and disclosure. If no error is found, the institution must explain and inform the consumer of the right to request the documents relied on.

Common failure points. Treating a fraud claim as a dispute with a merchant and routing it outside the process; requiring a police report or affidavit as a precondition to investigating; and closing investigations on the customer’s failure to return paperwork. Each has been the subject of enforcement.