Regulation E
Regulation E is the federal rule implementing the Electronic Fund Transfer Act, which protects consumers using electronic payments — ACH debits, debit cards, ATM withdrawals, and direct deposits. It gives you the right to stop payment on a preauthorized recurring transfer (with enough notice before the next debit) and sets the procedures and time limits for disputing an unauthorized or erroneous electronic transfer, including possible provisional credit during the investigation. It generally applies to consumer, not business, accounts.
Related forms
Related guides
How to dispute an unauthorized automatic payment
To dispute an unauthorized automatic payment that already posted, notify your bank within 60 days of the statement showing it. Under Regulation E the bank generally investigates within 10 business days and, if it needs longer, must give provisional credit and take up to 45 days. A confirmed error is corrected within one business day.
How to stop an automatic ACH payment you authorized
To stop a recurring ACH payment you authorized, tell the company in writing that you revoke your permission to debit your account, and tell your bank too. Under Regulation E you can also order the bank to stop payment on the preauthorized transfer by notifying it at least three business days before the next debit.
How to freeze your bank account after fraud
To freeze your bank account after fraud, call the bank's fraud department immediately, ask them to freeze the account and lock your debit card, then dispute every unauthorized transaction in writing. Under Regulation E, report unauthorized electronic transfers within 60 days of the statement to keep your liability low, and report identity theft at IdentityTheft.gov.