Bank Of America Employee Lawsuit – Bank of America is being sued for failing to provide adequate protection for debit cards to pay for unemployment after thousands of people in California fell victim to fraud. Image via iStock
A class-action lawsuit accuses Bank of America of massively defrauding unemployed California workers and cutting off access to unemployment benefits during the pandemic.
Bank Of America Employee Lawsuit
For more stories about inequality in California, sign up for Weekly Inequality Insights, one of California’s most pressing issues.
Bank Of America Employee In Apple Valley Finds Atm Skimmer
Bank of America is facing a new federal lawsuit for failing to secure thousands of California unemployment debit cards, part of a botched response to record claims that no job left the state Department of Employment Development the target of widespread fraud.
The complaint, filed on January 15 in the United States District Court in San Francisco, says the bank acted recklessly and proved “unwilling or unable to prevent criminals” from breaching the accounts of debit card without work. In the process, thousands of out-of-work Californians were unable to access much-needed unemployment funds or in some cases were fined for allegedly fraudulent charges.
“This case is very unusual,” said Brian Danitz, a Bay Area partner at the prosecutorial law firm Cochet, Pitre & McCarthy. “This is a $286 billion financial goliath. The CEO makes $25 million a year and doesn’t even provide basic security measures to protect EDD cardholders.
The CEO makes $25 million a year, and they haven’t even provided basic security measures to protect EDD cardholders. Brian Danitz, Plaintiff’s Attorney
Bank Of America Ordered To Pay More Than $100 Million To Customers After Illegal Activity
As recently reported, the uproar over widespread unemployment fraud during the pandemic has led to finger-pointing between the state and Bank of America, which has contracted since 2010 to pay unemployment benefits electronically. The lawsuit was filed as a class action case, pending court review, and Danitz said his office has been “full of other victims” since the lawsuit was filed.
Among the issues raised in the 67-page complaint are the lack of secure microchips on unemployment debit cards, “failures to secure” private account information and lax responses to reports of consumer fraud. The complaint cites the bank’s special state contract report, its promise to provide the state with “best-in-class” fraud monitoring, and how the fraud scandal has affected unemployed Californians.
On February 3, a second class-action complaint was filed against Bank of America by an attorney representing the families of victims following the devastating 2016 Ghost Ship warehouse collapse in Oakland. The new lawsuit against the bank, filed in January, alleges that the debit card provider was negligent and breached its contract by failing to prevent fraud on the accounts of the unemployed. claim.
“The events of 2020 will be very difficult without Bank of America making life more difficult for California’s unemployed,” attorney Mary Alexander said in a statement. “These are hard-working people who can’t pay rent, heat their homes or put food on the table because of Bank of America’s negligence.”
Zelle Scam: Lawsuit Claims Bank Of America Failed To Warn Customers Possibility Of Getting Scammed Using App
Some labor advocates have raised the prospect of suing the Employment Development Department over its role in freezing unemployment benefits, while the complaints allege that Bank of America violated a clause that ” zero liability” in a special state contract, which protects card holders in unemployment. To pick up the tab for any fraud.
Bank of America spokesman William Haldin said the bank is committed to returning funds to legitimate jobless claimants and has expanded its workforce twentyfold during the pandemic, to about 6,150. workers across the country. Although fraud investigations are ongoing in California and other states where Bank of America has similar contracts, the bank said the “majority” of recent unemployment fraud cases in California is linked to state application checks rather than stolen unemployment debit cards.
“California’s unemployment program is dealing with billions of dollars in fraud,” Haldin said. “Bank of America works every day with the state to prevent criminals from getting money and to ensure that legitimate recipients receive their benefits.”
The lawsuit, filed in January, revolves around the experience of San Francisco property manager Jennifer Yick, who felt “wrong” when she discovered more than $400 had been withdrawn from her Bank of America account without work. debit card at a state DoorDash cake shop and barbecue restaurant. . Yik said he did not use the food delivery service, did not receive fraud alerts and was repeatedly hung up on by Bank of America customer service when he tried to report suspected fraud in early December.
Bank Of America Hits Ppp Borrowers With Opaque Charges
The money has not yet been returned to his account, but Yik said he was motivated to file a lawsuit on behalf of others in similar situations: “Am I a second-class citizen?” Yik said. “That’s what I thought.”
At the center of the dispute is California’s ongoing struggle to separate fraudulent from legitimate claims when unemployment claims are backfiring. The CEO of identity-security firm ID.me said domestic and international fraud rings target California because of its size and vulnerability to paying backdated claims, which allows criminals to quickly collect thousands of dollars. dollars per fraudulent claim.
However, fraud experts warn that unraveling who is responsible for picking up the tab for large-scale criminal activity is likely to be complicated – and could leave taxpayers on the hook.
“If it turns out that California would not have approved all of these claims,” said Mason Wilder, a research specialist at the Association of Certified Fraud Examiners, “regardless of what their contract with Bank of America says about on debit cards. , I think California is ultimately to blame.” Taxpayers will be caught.”
Black Man Sues Detroit Bank Alleging Racial Discrimination, Wrongful Accusation Of Fraud
All told, the state has paid out $113 billion in unemployment benefits since March. The bank declined to comment on how many California jobless claimants filed debit card fraud complaints during that time.
Want to submit a guest comment or feedback on an article we’ve written? You can find our submission guidelines here. For any comment questions please contact: comment@
Lauren Hepler is an investigative journalist, where she covers issues including the destruction of pandemic unemployment programs and changing state demographics. Lauren was a former employee … more by Lauren Hepley A former employee is suing Bank of America for wrongful termination and gender discrimination, alleging the company used high-pressure tactics to employees will be afraid to make ethically questionable sales.
A former employee filed a $1.7 million lawsuit Thursday against Bank of America for wrongful termination, saying she was fired in retaliation for speaking out against high-pressure sales expectations that created the a hostile work environment for employees and encourages illegal and unethical sales practices.
Bank Of America Accused Of Opening Fake Accounts And Charging Illegal Junk Fees
Heather Bryant was fired in November 2019 for ethical reasons, but Bryant disputed the claims, arguing that she was the victim of gender discrimination and a hostile work environment.
“We recently received this complaint and based on an initial review we disagree with the claims,” Bank of America spokesman Bill Haldin said. “We will respond to these claims filed in court in the coming weeks. Bank of America is widely recognized as an excellent place to work, and we will not tolerate any form of inappropriate behavior.
Bryant described a management culture that was “driven by fear” as part of a targeted effort to increase credit card sales and make management efficient. The lawsuit alleges that managers threatened and intimidated employees to the extent that they feared for their jobs, creating an environment that encouraged illegal or unethical sales.
The lawsuit describes Bryant as a “high-performing” employee who worked at Bank of America for 21 years, eventually becoming one of the company’s highest-paid women. Bryant said he was working as a market leader overseeing sales staff in the Portland metro area when he was fired.
Retirement Plan Lawsuit Against Veterinary Hospital Network To Proceed
Beginning in the summer of 2018, Bryant continued to experience a worsening work environment, where “threats, intimidation, yelling, derogatory comments specifically directed at women, as well as abusive behavior and criticism” is the norm. The lawsuit alleges that other female employees experienced similar abusive treatment and that Bank of America failed to pay attention.
According to the lawsuit, some managers consistently “forced employees to push customers toward unnecessary credit cards and promoted credit card sales as the most important employee criteria.”
According to Bryant, executives began meeting with market leaders for 30-minute phone calls that were like “firing squads for humiliation,” where they were questioned and taunted about credit card sales and poor performance. branches. In the lawsuit, Bryant said management told him the calls were “sick.”
Bryant also said management began emailing employees a daily report of their credit card sales and used intimidation tactics, such as writing them up for low sales, to force employees to sell more credit cards for fear of losing their jobs.
What Women Employees Say About Goldman Sachs’ Culture
Concerned that Bank of America was falling into the “Wells Fargo route”, Bryant confronted management in September 2019 to express his concern that these practices were illegal.
Lawsuit against bank of america, bank of america discrimination lawsuit, bank of america modification lawsuit, bank of america lawsuit 2014, bank of america lawsuit, bank of america federal lawsuit, bank of america mortgage lawsuit, bank of america lawsuit settlement, bank of america overdraft lawsuit, employee bank of america, bank of america foreclosure lawsuit, bank of america lawsuit edd
