The Electronic Fund Transfer Act (EFTA) establishes strict deadlines for reporting unauthorized debit card charges. To minimize your financial liability, you should notify your bank within two business days of discovering that your physical card or PIN is lost or stolen. If you wait longer than two days, you could be held legally responsible for up to $500 of the fraudulent charges made on your account.
If you fail to report the unauthorized transactions within 60 days after your bank statement is mailed to you, the situation becomes much worse. After this 60-day window, you might lose all the money stolen from your account, including funds drawn from linked overdraft lines of credit. Acting quickly and reviewing your statements monthly is essential to ensure you are fully protected under federal and California consumer laws.
