California unemployment: Class action lawsuit filed against Bank of America for rampant unemployment fraud

SAN FRANCISCO (KGO) – 7 On Your Side has helped dozens of unemployed people whose services have been claimed by scammers – and Bank of America denied their requests for reimbursement of the scam

A class action lawsuit filed in the US District Court in San Francisco on Friday alleges Bank of America failed to stop fraudsters from stealing money from EDD debit cards from struggling workers.

The lawsuit, Yick v Bank of America, states that Bank of America never secured the cards with chip technology and did not prevent data breaches to secure millions of unemployment benefits.

It is also alleged that the bank failed to reimburse victims under the EDD contract and left them on hold for hours when they tried to file claims.

RELATED: EDD Claims 1.4 Million Unemployed Prove Identity or Lose Benefits; Verifying the ID is not easy

“This is very frustrating for thousands upon thousands of unemployed beneficiaries who have been stripped of the lifeline in the middle of a pandemic,” said class action lawyer Brian Danitz, an associate at Cotchett, Pitre & McCarthy, the firm filing the lawsuit.

Hundreds of workers came to 7 On Your Side after scammers deleted their accounts. Bank of America restored the funds just to drain the money – so that many had no money to live on.

“All my money is gone. Seven grand. So I filed a lawsuit and they said, ‘Your claim is closed.’ I’m like what, I’m not getting my money back? ”Asked Diane Davis, a Martinez resident.

RELATED: California Unemployment: EDD Freezes Pay Of Thousands Of Workers On New Years Day

“You took $ 16,000 from my account. Where did it go?” said Michael Conant of San Francisco in an interview with 7 On Your Side last November.

Bank of America said it has improved customer service and reduced waiting times on the phone, and is restoring money for those with legitimate claims.

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