diff --git a/src/hooks/auth/useAuth.ts b/src/hooks/auth/useAuth.ts
index 2bbfa7d..e30678d 100644
--- a/src/hooks/auth/useAuth.ts
+++ b/src/hooks/auth/useAuth.ts
@@ -132,17 +132,33 @@ export const useAuth = ({ funnelId, googleAnalyticsId, registrationData }: IUseA
       } catch (err) {
         // Extract error message and suggestion from API error
         if (err instanceof ApiError && err.data) {
-          const errorData = err.data as { errors?: Array<{ msg: string; path: string }> };
-          const emailError = errorData.errors?.find(e => e.path === 'email');
+          const errorData = err.data as { 
+            errors?: Array<{ msg: string; path: string }>;
+            status?: string;
+            message?: string;
+          };
           
-          if (emailError) {
-            setError(emailError.msg);
+          // Handle service error format: { status: "error", message: "..." }
+          if (errorData.status === 'error' && errorData.message) {
+            setError(errorData.message);
+            setSuggestedEmail(null);
+          }
+          // Handle express-validator format: { errors: [{ msg, path }] }
+          else if (errorData.errors) {
+            const emailError = errorData.errors.find(e => e.path === 'email');
             
-            // Extract suggested email from "Did you mean user@gmail.com?" message
-            const suggestionMatch = emailError.msg.match(/Did you mean (.+)\?/);
-            if (suggestionMatch) {
-              setSuggestedEmail(suggestionMatch[1]);
+            if (emailError) {
+              setError(emailError.msg);
+              
+              // Extract suggested email from "Did you mean user@gmail.com?" message
+              const suggestionMatch = emailError.msg.match(/Did you mean (.+)\?/);
+              if (suggestionMatch) {
+                setSuggestedEmail(suggestionMatch[1]);
+              } else {
+                setSuggestedEmail(null);
+              }
             } else {
+              setError(errorData.errors[0]?.msg || 'Email validation failed');
               setSuggestedEmail(null);
             }
           } else {