Bank Billing Errors or Unauthorized Charges
LIST Code: MO-01-01-00-00
LIST Code
MO-01-01-00-00
Title
Bank Billing Errors or Unauthorized Charges
Definition
This legal issue covers problems where a bank, credit union, or financial institution incorrectly charges interest, fees, or amounts to an account, or processes transactions that the account holder did not authorize. This includes errors in how payments, deposits, balance transfers, or promotional terms are applied, as well as charges that appear without the customer’s consent. This category also includes disputes involving misapplied payments, incorrect interest calculations, duplicate charges, improper overdraft or service fees, and failures to honor advertised or agreed terms. Errors may result from system problems, employee mistakes, or incorrect account coding, and can cause balances to increase unexpectedly or accounts to show inaccurate information. In addition, this issue covers situations where unauthorized transactions occur due to fraud, identity theft, or account compromise, as well as cases where a bank delays or fails to correct known errors after being notified. Legal considerations may include timelines for reporting errors, required investigations by the bank, documentation of disputes, and consumer protection lawsifhts under federal or state law.