Holding Banks Accountable And Protecting Consumers In Virginia
Last updated on November 19, 2025
Cybersecurity incidents are on the rise, and anyone can get hacked. When this happens, of course, you worry about your money, your future and how to fix the problem. A seasoned consumer protection lawyer can help protect your rights and hold the responsible parties accountable.
At Thomas R. Breeden, P.C., our firm’s founder has dedicated his practice to helping consumers fight back against fraudulent practices. Since 1991, we have been helping our clients in Manassas and northern Virginia right the wrongs of bank mistreatment and negligence. If your account was hacked, and the bank was at fault or a bank error caused damage to your credit report scores, we can help.
How Can The Fair Credit Reporting Act Protect Consumers Against Banks?
The Fair Credit Reporting Act (FCRA) regulates how consumer credit information is collected, disseminated and used. Its main goal is to promote the accuracy and privacy of the information in your credit file.
If you find a mistake on your credit report, you have the right to dispute it with the credit bureau. Under the FCRA, the credit bureau and your bank are required to conduct a reasonable investigation. If the investigation confirms that yours is wrong, your bank must have it corrected or removed. When a bank fails to investigate properly or continues to report inaccurate data after being notified of an error, it violates your rights under the FCRA.
How Can The Electronic Fund Transfer Act Protect Consumers Against Banks?
Regulation E and the Electronic Fund Transfer Act (EFTA), protect consumers who use electronic fund transfer services. This law covers transactions like ATM withdrawals, debit card purchases and automated bill payments.
The EFTA is extremely important because it limits your liability for unauthorized transfers. If someone hacks your account and steals money, the amount you are responsible for is capped.
When Are Banks Liable For Hacked Accounts?
A bank’s liability will depend on what caused the money to leave your account. Banks have an obligation to protect your funds from unauthorized transfers. If you voluntarily gave information through a scam call or email, it is usually considered an authorized transfer, even if you were tricked.
If your account is hacked because someone bypassed the bank’s security measures, the bank may be liable for the loss. Banks must maintain adequate cybersecurity to protect customers. When a transfer happens completely without the account holder’s knowledge or action, and it is traceable to a security failure, an experienced bank liability lawyer can evaluate your situation and determine if the circumstances point to bank liability under federal law.
Bank Liability For Credit Report Errors
Banks have a legal duty to report accurate information to the credit reporting agencies. When a bank fails to report correctly, it can violate the law and you can hold them accountable. Some of the most common credit report errors that banks may be responsible for include:
- Reporting payments as missed when they were made: This error incorrectly shows a delinquency, which instantly lowers your score.
- Reporting payments as late when they were on time: A late payment mark can stay on your report for seven years, even if it was reported by mistake.
- Inaccurately reporting a debt as charged-off or in collection: This is the most severe type of error and suggests you failed to pay the debt entirely.
- Reporting the wrong balance or credit limit on an account: This can hurt your score by making your debt-to-limit ratio look higher than it is.
Inaccurate information on your credit report can seriously damage your financial life. Even a single error can lead to a lower credit score. A low score means you pay higher interest rates or cannot get approved for credit at all. When a bank or other furnisher of information is responsible for these types of mistakes, we can demand that the bank correct the errors. If they refuse, we are ready to take legal action to protect your financial standing.
What Is Cross-Collateralization And When Is It Illegal?
Cross-collateralization is when banks use money in one of your accounts to pay off a defaulted loan in another. For example, if you have a savings account and a personal loan with the same bank, and you default on the loan, cross-collateralization is when the bank takes funds from your savings account to cover the loan balance.
Not every bank does this, and even if a bank has this policy, it may not apply to every account. The policy must be clearly detailed in your loan or deposit account agreement. A bank cannot move your money without a valid legal agreement. If your bank has improperly seized funds from your checking or savings account to cover a defaulted loan, you should seek legal guidance from an experienced consumer protection lawyer. We defend consumers in debtor-creditor disputes and protect their funds from unlawful seizure.
Consult A Manassas Bank Liability Attorney Today
If you are dealing with a bank that has allowed your account to be hacked, is reporting false information on your credit file or illegally took your funds through cross-collateralization, we can help.
Our attorney, Thomas Breeden, is available by appointment for initial consultations to answer your questions and provide guidance. Call us at 703-659-0188 or send a message through our firm’s website to schedule your consultation. We are ready to stand up for you against large financial institutions.