What You Can Do About Unauthorized ACH Withdrawals

someone using a phone and laptop to look at online banking account

Many consumers use Automatic Clearing House (ACH) withdrawals for effortless and time-effective monthly bill pay. An ACH payment securely transfers funds and requires the permission of the account holder to do so. If you put your bills on autopay, you will have signed an agreement in some form that allows for the automatic withdrawal of funds needed to balance the account. However, this does not give businesses free rein over a consumer’s bank account. An unauthorized or unscheduled withdrawal of funds, whether intentional or not, violates federal law.

Lawsuits over unauthorized ACH withdrawals can be complex and confusing, but understanding your rights and options is crucial. This blog post will delve into the world of automatic withdrawal violation lawsuits and provide valuable insights for everyone. Whether you’re an individual consumer or a business owner, this information will equip you with the knowledge to navigate this legal landscape.

Unauthorized ACH Withdrawals by USAA

The United Services Automobile Association (USAA) is a financial services company offering insurance and banking products to military members and their families. A group of just 25 Army officers established the company in 1922, and today it boasts more than 13 million customers. Despite USAA’s avowed dedication to armed forces members specifically, online complaints are stacking up, suggesting their practices harm consumers on a large scale. Consumers are reporting that USAA is drawing payments from their accounts without their consent. In a few cases, the consumer states that they ended their policy with USAA and were somehow still charged on a continual basis.

This activity violates the Electronic Fund Transfer Act (EFTA).

Electronic Fund Transfer Act (EFTA)

The EFTA establishes the rights of consumers and the responsibilities of businesses using electronic fund transfer systems.

Automatic withdrawal violation lawsuits under the EFTA occur when a company breaches its agreement with a customer by illegally withdrawing funds from their bank account without proper authorization. These violations can range from unauthorized charges to excessive fees, frustrating customers, and being financially burdened.

If you find yourself a victim of automatic withdrawal violations, it’s essential to understand your rights and take appropriate action. First and foremost, document every transaction and communication related to the breach, as these records will play a crucial role in building your case.

What You Can Do

To protect your rights, consider the following steps:

  1. Cease Authorization: Contact your bank immediately to stop any further unauthorized withdrawals.
  2. Review the Agreement: Carefully examine the terms and conditions of the agreement you entered with the company. Look for any clauses that may have been violated.
  3. Contact an Attorney: Seek legal advice from an experienced attorney specializing in automatic withdrawal violation lawsuits. They will guide you through the legal process and help you seek compensation for your losses.

Remember, as a consumer, you have legal protections to prevent unauthorized withdrawals. Understanding these rights and taking appropriate action is essential in seeking justice.

What You Can Get

When pursuing an automatic withdrawal violation lawsuit, seeking compensation is often a primary objective. While each case is unique, several avenues exist to explore in holding companies accountable for their actions.

  1. Refund or Reimbursement: If you prove that the company wrongfully withdrew funds from your account, you may be entitled to a refund or reimbursement of the unauthorized charges.
  2. Damages: In some instances, you may be eligible to seek damages for the financial and emotional stress caused by the violation. Consulting with an attorney will help determine whether this is a viable option.
  3. Class Action Lawsuits: If multiple consumers have been affected by the same company’s automatic withdrawal violations, joining or initiating a class action lawsuit can hold the company accountable and seek compensation collectively.


Automatic withdrawal violation lawsuits can be harrowing experiences, but justice can prevail with the proper knowledge and legal support. By understanding your rights, documenting every transaction, and seeking the guidance of an experienced attorney, you can protect yourself and seek appropriate compensation.