How to Sue a Bank: Full Guide

Suing a Bank: When You Can and Can Not

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In 2017, a proposed rule from the Consumer Financial Protection Bureau that protects banking consumers was denied. Consumers currently cannot sue banks and are forced to settle for out-of-court arbitration. However, there are instances where you can sue banks in small claims courts.

In this article, we will provide you with some basic guidelines on how to sue a bank and how you can do so easily and effectively using the world’s first robot lawyer, .

Legal Grounds for Suing a Bank

As a consumer, there are protections afforded to you by the law. There are different reasons for suing a bank and some may not hold their weight in a small claims court. But if you believe your bank has violated any of your consumer protection rights, then you can proceed to sue. Some relevant laws are as follows:

Gramm-Leach-Bliley Act (GBLA) – protects your nonpublic personal information (NPI)
Truth in Lending Act (TILA) – banks are required to provide accurate information on the rate of interest, monthly payment, and others that relate to mortgage and credit loans
Fair Debt Collection Practices Act (FDCPA) – banks are prohibited from using harassing tactics or using false information to collect a valid debt
Fair Credit Reporting Act (FCRA) – banks are required to put correct information on your credit report and remove those which are deemed false

Which Credit Card Companies Can You (And Can’t) Sue?

Financial institutions have a way to protect themselves from being sued by putting mandatory arbitration agreements in the contract. Nonetheless, some banks do not have mandatory arbitration clauses, and others allow consumers to opt-out of it. Refer to this table below:

Banks	Mandatory Arbitration Clauses	Opt-out Option	Period to Opt-Out
American Express	✔	✔	45 days
Banco Popular	✔	✔	90 days
Bank of America	✖	N/A	N/A
Barclaycard	✔	✖	N/A
BB&T	✔	✖	N/A
Capital One	✖	N/A	N/A
Chase Bank	✖	N/A	N/A
Citibank	✔	✔	45 days
Citizens Bank NA	✔	✔	45 days
Comenity	✔	✔	30 days
Credit One Bank	✔	✖	N/A
Discover	✔	✔	30 days
Fifth Third Bank	✔	✖	N/A
First National Bank of Omaha	Only for disputes larger than $25,000	✖	N/A
First Premier Bank	✔	✔	30 days
Key Bank	✔	Only for Key2More & Key Latitude	60 days
Merrick Bank	✔	✔	60 days
Navy Federal Credit Union	✖	N/A	N/A
Pentagon Federal Credit Union	✖	N/A	N/A
PNC Bank	✔	✔	45 days
Regions Bank	✔	✖	N/A
State Employees Credit Union	✖	N/A	N/A
State Farm Bank	✖	N/A	N/A
SunTrust Bank	✔	✔	45 days
Synchrony Bank	✔	✔	60 days
TD Bank	✖	N/A	N/A
U.S. Bank	✔	✖	N/A
USAA Federal Savings Bank	✔	✖	N/A
Wells Fargo	✔	✖	N/A
World’s Foremost Bank (Cabela’s)	✖	N/A	N/A

Suing a Bank for Negligence

Negligence or professional malpractice is one of the many reasons to go after a bank. This may come in the form of a banking institution selling you a product that resulted in you going bankrupt. When this happens, you may not have the funds to hire a lawyer and pay exorbitant fees. We recommend a few risk mitigation steps on how to sue a bank for professional malpractice without having to add to your financial problems:

Step 1: Consider third-party litigation funding. The funder can pay for all the expenses incurred in the lawsuit and gets a percentage (10-30%) of the awarded damages if your case wins.
Step 2: Draft a conditional fee agreement (CFA). A CFA lets you avoid hefty costs such as fixed lawyer’s fees or hourly rate agreements. Instead, the lawyer will only be paid if the case wins.
Step 3: Consider after the event (ATE) insurance. This type of insurance is purchased after an event has resulted in a dispute, in contrast to health insurance, which is purchased beforehand. ATE insurance can protect you from the damages in case you lose in court. However, it’s important to note that in case you win in court, a portion of your reward will be needed to pay for the premium.

Suing a Bank for Not Refunding Fraudulent Charges

Depending on your situation, you can get your money back after a fraudulent charge. If you were scammed via your debit card, you may get some or all of the money back depending on how fast you report the incident, as follows:

If you report your lost card or fraud immediately and the card has not been used yet, you will receive all of your money back
If the loss is reported within 48 hours, you may be responsible for up to $50
If the loss is reported within 48 hours to 60 days, you may be responsible for up to $500
If the loss is reported after 60 days, you may be responsible for all fraudulent payments

Victims of credit card scams have a more straightforward way of getting your money back. Credit cards are highly regulated by the Fair Credit Billing Act and can provide better protection. The act limits your liability to $50, and if you report the incident within 30 days, most banks are willing to waive the liability fee.

How to Sue a Bank With DoNotPay

Suing a bank in most situations is complicated and time-consuming. However, can simplify the process for you! It removes the cumbersome process of drafting letters and filing forms, and all you have to do is:

Log-in to and select the Sue Now product
Enter the dollar amount you are owed
Select whether you want a demand letter or court filing forms
Describe the reason for the lawsuit and submit any applicable details, including photo proof

That’s it! DoNotPay will then generate a demand letter or court filing forms for you. We’ll even mail a copy of your demand letter to the individual or business you are suing (if you would like us to, of course).

Not only can you sue a bank with DoNotPay, but also fight against:

DoNotPay Does It All

suing ATT in small claims court with an app

You don’t always need to hire a lawyer - get your legal documents filled out, signed, and notarized all in one app! Here are some legal forms DoNotPay can help you with:

But that’s not all! We also protect your rights as a consumer by: