What are the penalties if a creditor breaks the EFT Act?
If a financial institution doesn’t follow the provisions of the EFT Act, you may sue for actual damages (or in certain cases when the institution fails to correct an error or recredit an account, for three times actual damages), plus punitive damages of not less than $100 or more than $1,000. You’re also entitled to court costs and attorney’s fees in a successful lawsuit. Class action suits are also permitted. If an institution fails to make an electronic fund transfer or to stop payment of a preauthorized transfer when properly instructed by you to do so, you may sue for all damages that result. Return to index . . .Information courtesy of the Federal Reserve.
