Can I Dispute an ATM Withdrawal?

An unexpected ATM withdrawal can cause concern, but these transactions can be disputed with your financial institution. Whether the withdrawal was unauthorized, an error, or fraud, processes exist to address these discrepancies. Acting promptly protects your financial interests and facilitates resolution.

Understanding Your Rights for Disputing Withdrawals

Consumers are protected by federal regulations, Regulation E. This regulation outlines the rights and responsibilities of both consumers and financial institutions concerning electronic transactions, including ATM withdrawals. An “unauthorized electronic fund transfer” is a transaction initiated by someone without actual authority, from which the consumer receives no benefit, or an incorrect amount of money received from an ATM.

Regulation E establishes limits on consumer liability for unauthorized transactions, depending on how quickly an issue is reported. If a debit card is lost or stolen, reporting it within two business days of discovery limits liability to a maximum of $50. If notification occurs after two business days but within 60 calendar days after the first statement showing the unauthorized transaction, liability can increase to $500. Failing to report an unauthorized transaction appearing on a statement within 60 days can lead to unlimited liability for transactions occurring after that 60-day period.

Steps to Take When Disputing an ATM Withdrawal

Initiating a dispute for an ATM withdrawal requires gathering specific information before contacting your financial institution. Collect the exact date and time of the withdrawal, the precise amount, and the location of the ATM. Any relevant receipts, account statements, or transaction details that corroborate your claim should be gathered. Regularly reviewing bank statements and transaction alerts helps identify discrepancies quickly.

After compiling this information, contact your bank through their designated channels, such as a customer service phone line, online portal, or by visiting a local branch. Many banks require an initial verbal notification followed by written communication within a specified timeframe, typically 10 business days, to ensure full protection under Regulation E. Keep detailed records of all interactions, including dates, times, names of representatives, and any reference or confirmation numbers provided. This documentation serves as valuable evidence throughout the dispute process.

The Investigation Process and Resolution

Once you file a dispute, your financial institution is obligated to investigate the claim within specific timeframes. Under Regulation E, the bank has 10 business days to complete its investigation. If the investigation cannot be concluded within this initial period, the bank may extend it up to 45 calendar days, or up to 90 calendar days for certain cases such as transactions initiated outside the U.S. or those involving new accounts.

During an extended investigation, the bank is required to provide a provisional credit to your account within 10 business days of receiving your error notice. This temporary credit allows access to the disputed funds while the investigation is ongoing. The bank’s investigation may involve reviewing transaction logs, ATM camera footage, and contacting you for additional details.

Upon conclusion, the bank will notify you of its findings within three business days. If the dispute is resolved in your favor, the provisional credit becomes permanent; if the bank determines no error occurred, the provisional credit may be reversed. If you disagree with the bank’s final decision, you can escalate the matter by filing a complaint with the Consumer Financial Protection Bureau (CFPB), an agency that oversees consumer financial products and services.