Putting your money in the bank and letting it stay there for safekeeping seems like such an ordinary thing, but what’s going on is really quite extraordinary. Before the Federal Deposit Insurance Corporation was established in 1933, you really could lose your life savings if there was a run on your bank. That happened to many banks on Black Tuesday in 1929, spurring the Great Depression.
Almost 100 years later, most of us know we can put our trust in banks to hold our wealth. After all, the FDIC insures up to $250,000 of anyone’s wealth held in an FDIC-approved bank account, right? Surely this means we’re covered if a wrongdoer commits wire fraud or check fraud to take money from us… right?
Well, no. The FDIC’s coverage only protects your wealth if you lose it as a result of the bank’s failure as a business, not because you are the victim of a crime. That’s not to say you aren’t without other rights that protect you. So, when you lose a significant sum in this sort of way, don’t feel bad if you don’t immediately know what to do.
Whatever You Do, Act Quickly
Those who lost money from wire fraud, check fraud, and other kinds of bank fraud may be protected from liability for what occurred. This means that in some cases, victims of unauthorized electronic fund transfers (EFTs) or fraudulent checks may not be completely liable for what was taken from them.
The key, however, is acting as fast as possible to notify your bank – and often the police – of what occurred.
For example, Regulation E under the Consumer Financial Protection Bureau limits consumer liability for unauthorized EFTs depending upon how quickly an instance is noticed and reported. In this case, liability for loss can be as low as $50. When it comes to check fraud, you must report this to your bank immediately. If your bank agrees with you that a crime occurred, it should refund your account minus what you are legally liable for, if anything.
You Can Experience Pushback from Your Bank
Any rights you have that limit your liability for loss when you are the victim of bank fraud don’t serve your bank’s interests. For that reason, your bank might be inclined to make it hard for you to get back what was taken from you – and they have major law firms on their side that are happy to help them do it.
That’s why when you’ve lost money from fraud, you should consult with an attorney of your own as soon as possible. We at The Mirkhan Law Firm can provide you with the critical legal support you need to assert your rights and pursue compensation for what you lost. Our goal is to even the playing field for our clients so that justice can serve them.
With more than 20 years of experience in banking law, The Mirkhan Law Firm has what it takes to protect consumers like you when you need help the most.
For more information about our legal services, contact us online.