The preliminary injunction also prohibits the bank from denying claims based on multiple factors.
SAN FRANCISCO — A preliminary injunction by the US District Court in San Francisco will prevent Bank of America from disrupting some Californians' access to unemployment and disability benefits.
The plaintiffs alleged Bank of America failed to "implement basic security measures, including its failure to include industry-standard security chips on the cards." Instead of investigating fraud claims, the bank "denied cardholder claims and froze their accounts." The suit also claims many were left without access to their prepaid debit card after the bank "failed to handle the high volume of customer service calls from cardholders."
On Tuesday, June 1, the court issued an order, prohibiting Bank of America from:
- Freezing accounts based on its automated fraud filter.
- Denying claims of unauthorized transactions based on the automated filter.
- Denying claims or provisional credit without conducting an investigation.
- Denying claims without providing a written explanation of the bank’s findings.
The claim also requires the bank to:
- Reopen any claim the bank closed or denied based on its automated fraud filter, and provide written notice to cardholders that their claims have been reopened.
- Provide provisional credit if the new or reopened claim cannot be resolved within 10 business days, and complete the investigation within 45 days.
- Establish a direct toll-free number to enable class members to reach the Claims Initiation Call Center, and expand the call center’s hours to 24 hours per day, 7 days per week within 60 days after the order.
- Establish a direct toll-free number to enable class members to authenticate their identity and resolve challenges to blocked accounts, to be open 24 hours per day, 7 days per week.
- Staff the call centers such that the average speed to answer is no more than five minutes, 90% of the time.
- Provide written notices to class members regarding the new toll-free numbers.
In a statement on the decision, Bill Halldin, spokesman for Bank of America, said the bank's goal "has been to ensure legitimate recipients could access their benefits."
"With this agreement, we are committing to additional measures to help those entitled to unemployment benefits receive those benefits as quickly as possible," Halldin said.
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FAQs
A federal judge on Tuesday prohibited Bank of America from freezing accounts for California unemployment benefits based solely on an automated fraud filter and required it to do a better job of responding when jobless people say their benefits were stolen.
What is the lawsuit against Bank of America EDD? ›
A class-action lawsuit says BofA left the door open for unemployment benefit accounts to be hijacked by criminals. Then, the lawsuit said, BofA would freeze accounts, leaving victims unable to access past or future benefits, even with a replacement card.
Can Bank of America freeze my EDD debit card? ›
Reasons for Bank of America to freeze or suspend an account include suspected fraudulent, unauthorized or unlawful activities, or a suspect transaction. EDD said you should call Bank of America at the number on the back of your card (1-866-692-9374) to resolve the situation.
Why is my EDD Bank of America card blocked? ›
This may be due to suspected fraudulent, unauthorized or unlawful activities involved with the EDD Debit Card or a suspect transaction. In this case, the EDD does not need to verify your identity and suggests that you contact Bank of America. EDD does not have direct access to withdraw funds on any accounts.
Can you file a lawsuit against EDD? ›
There are actions you can do on your own. Besides, there are no provisions in the law allowing you to sue the EDD for what you believe to be taxpayer harassment. You cannot recover fees from the EDD.
Is there any lawsuits against Bank of America? ›
A class action lawsuit has been filed against Bank of America by Potter Handy LLP on behalf of credit cardholders who were not properly informed about the terms and conditions of their auto bill pay program.
What is the largest lawsuit against Bank of America? ›
The Bank of America case is led by California truck driver Anthony Ramirez, California manufacturing worker Mynor Aldana and New Jersey retired widow Janet Hobson. Each said the bank refused to refund hundreds of dollars of overdraft and insufficient funds fees imposed in 2020, 2021 or 2022.
Why is EDD freezing accounts? ›
- The California department that distributes workers' disability benefits has frozen 345,000 claims to battle suspected organized fraud rings and fake applications. There has been an unusual amount of new disability claims made to the Employment Development Department in the past month, the EDD said.
What did Bank of America get in trouble for? ›
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay more than $100 million to customers for systematically double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, ...
Why is my EDD account locked? ›
myEDD will lock you out if you incorrectly enter your password or answer your security questions too many times. Try to log in again later. If you still need help, contact us.
You may withdraw up to $700 of your available account balance per day. For card purchases using your personal identification number (PIN), your daily limit is $1,000 of your available account balance.
How do I Unrestrict my bank account? ›
To unfreeze your bank account, you must contact your bank to figure out the issue and resolve the underlying problem, such as paying off debts or providing evidence of innocence. Unfreezing an account is at the bank's discretion and is not always guaranteed. You don't want a frozen account; nobody does.
How do I unblock my Bank of America debit card? ›
Using the Mobile Banking app or Online Banking:
- Go to Menu.
- Select Manage Debit Card/Credit Card.
- Select the card you want to manage.
- Toggle to Lock or Unlock under the card image.
Complaints also may be submitted to the EDD by email at EEOmail (EEOmail@edd.ca.gov), or as directed on the Department of Labor, Civil Rights Center (dol.gov/crc).
How do I fight EDD? ›
You have the right to appeal the EDD's decision to reduce or deny you benefits. You must submit your appeal in writing within 30 days of the mailing date on the Notice of Determination and/or Ruling (DE 1080CZ) or Notice of Overpayment (DE 1444).
Is California forgiving EDD overpayment? ›
If we determine the potential overpayment was not your fault or was not due to fraud, you may qualify for an overpayment waiver. We will send you a Personal Financial Statement (DE 1446) with the Notice of Potential Overpayment (DE 1447).
Will I get money from Bank of America lawsuit? ›
The court has approved the Settlement and if you did not exclude yourself, you will automatically receive a payment or account credit. You could have chosen to exclude yourself from the Settlement or opt out.
What is the Bank of America scandal? ›
Bank of America, the nation's second largest bank, has been ordered to pay more than $100 million to customers for double charging insufficient fund fees, withholding reward bonuses and opening accounts without customers' knowledge or permission.
Why did I get a Bank of America settlement? ›
You are a member of the Settlement Class if You: (1) had a Bank of America consumer checking Account in the United States; and (2) were charged Overdraft Fees between May 25, 2011, and February 5, 2016, on transactions that were authorized and approved when sufficient funds were available to cover the amount of ...
How much is the Bank of America settlement check? ›
Under the terms of the Bank of America settlement, class members can receive an equal share of the net settlement fund. Exact payments will vary depending on the number of submitted claims, but class members may receive up to $500 from the settlement. The deadline for exclusion and objection is Dec. 12, 2023.
