Bank errors: Types and how to fix them

"Bank error in your favor" is a good community card to pull in Monopoly, but hearing that your real bank made an error will probably cause your heart rate to spike. But what type of bank errors do you need to be on the look out for, how do you resolve them, and are there times when they are actually in your favor?

Finder.com shares the most common bank errors and how to fix them.

9 common bank errors

There can be any number of bank errors, which can happen from human error, faulty security systems or just bad actors. Some of the most common banking mistakes include:

1. Data leaks due to faulty security systems
2. Human data entry errors
3. Double-charging fees
4. Wrongfully charging overdraft or late fees
5. Lost cash and/or deposits
6. Illegally not disclosing fees or APR on agreements
7. Wrongfully repossessing vehicles or homes
8. Misapplying loan payments
9. Opening accounts without consumer consent

What can you do about a bank error?

For typical errors, such as a double debit or an incorrect deposit amount, the process is pretty simple.

For example, let's say you deposited a check for $1,000, but only $100 cleared. To get this sorted, there are three basic steps to follow:

1. Gather proof. Your bank statements will list transactions, deposits and withdrawals, so first you need the deposit date and the transaction number to show the financial institution. If you still have the check (which is recommended until the amount clears), then you have proof that the deposited amount was incorrect.
2. Contact your bank. Most banks and credit unions have multiple ways to contact them. Visiting a branch or emailing may be easier when you need to provide proof of a bank error, but you may be able to resolve the issue over the phone.
3. Get the error fixed. In general, errors like wrongfully deposited amounts or electronic transfer issues are typically corrected within 10 business days. For more complex errors, it may take up to 45 days to resolve.

Do banks owe me money after an error?

Sometimes, yes, you may be owed something if there's a major error on the bank's part.

In cases of wrongly deposited amounts, the bank should send you the amount you should have received within 10 days (in most cases), but usually no extra compensation. Other smaller issues like double charges should also be resolved quickly, with a simple refund.

However, in more extreme cases, such as errors that impacted thousands of customers like a data breach, an investigation will likely occur. If it's found that the financial institution was widely mismanaging accounts or breaking laws that caused the bank errors, a class action lawsuit may follow. If the lawsuit goes through, the financial institution may agree or be required to pay a settlement and/or redress for the mistake.

Here are some examples of lawsuits from bank errors, and how they were resolved.

Wells Fargo: Mismanagement of accounts (2022)

In 2022, the Consumer Financial Protection Bureau (CFPB) ordered Wells Fargo to pay $3.7 billion after mismanagement of auto loans, mortgages and deposit accounts was found to have negatively impacted over 16 million consumers.

The bank was required to pay $2 billion (of the $3.7 billion) in redress to consumers, since customers were being illegally charged fees and interest charges on loans and mortgages, as well as having their cards wrongfully repossessed and mortgage payments misapplied.

LastPass: Data breach (2022)

While not technically a bank, this error trickled down into money errors. LastPass is a password management service, and it experienced a data breach in 2022. A class action lawsuit was filed, since it was found that LastPass failed to prevent an unauthorized person from stealing source code and information, which was then used to steal consumer information.

LastPass agreed to an $8.2 million settlement, and those who submit their claim form with proof of losses tied to the 2022 data breach can claim a one-time payment of up to $300.

Patelco Credit Union: Cybersecurity issues (2024)

Patelco Credit Union is a credit union in California, and in 2024, it experienced a data breach that was allegedly caused by a lack of cybersecurity measures. While the credit union didn't admit to any wrongdoing, it agreed to pay a $7.5 million settlement to resolve the class action lawsuit.

Consumers who provide documentation of losses from the 2024 breach can claim up to $5,000 in reimbursement. Those who did not incur losses from the breach can still claim between $100 and $200, depending on how many class members submit claims.

What if a bank error takes a long time to fix?

In cases where there's a deposit error that takes longer than 10 days to fix, there is a regulation meant to help you while the financial institution investigates: provisional credit.

A provisional credit is a temporary deposit in your account from your financial institution that you can use while they investigate a disputed transaction or error. The provisional credit should be the exact amount you are disputing.

Using our previous example of a $1,000 check that only deposited $100, let's say you dispute the transaction and it takes your bank longer than 10 days to investigate. The bank should give you a provisional credit of $900 (the missing amount) to tide you over. If the bank error was found to be an actual error, you keep the provisional credit. If the error was found not to be an actual error, the financial institution revokes the provisional credit.

When you open a deposit account, such as a checking account, you'll have a deposit agreement. These agreements should contain information on how to resolve bank errors, how long it will take the bank to resolve them and information about provisional credits.

What if I made a bank error?

Mistakes can happen to anyone. If you made a bank error, contact your bank to fix it - just like you'd contact your bank if they made an error.

Sticking with our checkwriting example, let's say you went to deposit a $1,000 check. However, the numerical amount says $1,000, and the written amount says "one hundred dollars 00/100."

According to the Office of the Comptroller of the Currency (OCC) and the CFPB, the spelled-out numbers overrule the numerical amounts on a check.

So, in that example, the financial institution would be required to deposit the $100 instead of the $1,000. In cases like this, there isn't much you can do besides get another check for the rest of the amount. The financial institution is required to follow the spelled-out words, and the error would fall on you, unfortunately.

Bottom line

Bank errors can happen, and they can happen frequently. Luckily, there are regulators designed to protect consumers and hold financial institutions accountable for mistakes that harm customers.

The downside is that litigation for major errors, such as data breaches, can take months or even years to resolve. But no matter the error, be sure to contact your bank immediately, save your bank statements showing the error and know your rights.

This story was produced by Finder and reviewed and distributed by Stacker.

Copyright 2026 Stacker Media, LLC

This story was originally published April 16, 2026 at 8:00 AM.