Mary Alexander & Associates Files Class Action Lawsuit Against Bank of America for Failure to Provide Adequate Protection for Unemployed Californians
SAN FRANCISCO, February 3, 2021 / PRNewswire / – Mary Alexander & Associates filed a class action lawsuit in federal court San Francisco against Bank of America on behalf of thousands of Californians who claimed the country’s second largest bank had failed to adequately protect its unemployment benefits.
Bank of America (BofA) has an exclusive contract with the California Department of Employment Development (EDD) to manage EDD benefits using debit cards issued by BofA. According to the complaint, BofA had to provide secure unemployment benefit accounts. The complaint alleges that BofA did not implement even the most basic cybersecurity measures. As a result, these Californians lost their EDD income due to fraudulent transactions and hacked accounts.
According to the complaint, the BofA did not respond to and support many of the defrauded cardholders despite having a “zero liability” policy. BofA’s bad reactions to the fraud included:
- Cardholder account freezing without warning or explanation;
- No proper telephone response for EDD cardholders on customer service line;
- Immediate closure of claims that have been opened (without proper investigation); and
- No preliminary credit for these EDD cardholders.
The lawsuit alleges that BofA violated California’s consumer protection law. California Act against Unfair Competition and Ordinance E of the Federal Act on Electronic Money Transfer; violate his contract with EDD cardholders; EDD cardholders have not warned of the risks associated with EDD debit cards; and among other things negligently fulfills his contract with EDD.
“The events of 2020 were tough enough without Bank of America making life any more difficult California unemployed, “said the lawyer Mary Alexander. “These are hardworking people who, due to Bank of America’s negligence, have been unable to pay rent, heat their homes, or put food on the table.”
The lawsuit is Cajas v Bank of America, NA, Case No. Case 3: 21-cv-00869, in the US District Court for the Northern District of California. To read the complaint, click here.
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SOURCE Mary Alexander & Associated