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A sign at a Bank of America Bank and Loan banch, representing a fraud class action lawsuit.
(Photo Credit: Jonathan Weiss/Shutterstock)

Update:

  • A group of Bank of America customers asked a New Jersey federal court not to throw out their latest version of a class action lawsuit filed against the bank. 
  • The BofA customers claim the bank failed to adequately safeguard against fraudulent activity on prepaid debit cards used for pandemic-related unemployment benefits. 
  • A New Jersey federal judge previously dismissed the class action lawsuit in July, ruling at that time that the BofA customers would need to bolster their claims with more details for them to be allowed. 
  • The BofA customers say their latest filing, which marks the third time the complaint has been amended, resolves the issue. 
  • A customer initially filed the class action lawsuit in 2021, arguing an alleged card skimmer stole her COVID-19 unemployment benefits. 

Bank of America unemployment debit cards class action lawsuit overview:

  • Why: The plaintiff accuses the banking giant of mishandling unemployment benefits debit cards, thus failing to protect vulnerable New Jerseyans from debit card fraud and further financial problems.
  • Who: A New Jersey resident filed a class action lawsuit against Bank of America.
  • Where: The class action lawsuit was filed in New Jersey federal court.

(Jan. 5, 2022)

Bank of America faces a class action lawsuit for its supposed mishandling of New Jersey unemployment benefits, resulting in the loss of thousands of dollars of benefits and compromised personal and account information. 

The New Jersey Department of Labor & Workforce (LWD) had contracted Bank of America to issue debit cards to individuals receiving unemployment benefits. Bank of America promised “best-in-class” fraud monitoring and to comply with banking and transfer laws. The class action complaint contests these representations of Bank of America’s services. 

The class action lawsuit was filed by Cassandra Valerie Beaman, a New Jersey resident who lost her job in March 2020 after the start of the coronavirus pandemic and began receiving unemployment benefits via a Bank of America LWD debit card. In May 2021, Beaman noticed and reported $300 worth of fraudulent activity on the account.

Since then, Beaman has allegedly called Bank of America more than 20 times. Beaman says that Bank of America has yet to credit her account for the stolen money, unfreeze her account or re-authorize access to her account. Beaman argues that as “a direct consequence of Bank of America’s actions,” she missed a rent payment and a phone bill and has struggled to afford other life necessities. 

Beaman seeks to represent a nationwide class of all persons who were Bank of America LWD debit cardholders at any time between Jan. 1, 2020, and the present, and whose eligibility for benefits LWD has not revoked for failure to establish valid identity. She also proposes several subclasses to cover the accusations of claim denial, untimely investigations, credit rescission, account freezing, account blocking, security breach and lack of EMV chips. 

BofA skimped on consumer protections, complaint says

Central to the complaint is that Bank of America “treated these Cards and Accounts with less care than it affords its regular consumer debit and credit cardholders.” For starters, the LWD debit cards are equipped, not with industry-standard EMV chip technology, but with now-outdated magnetic strips which are known to be susceptible to skimming, cloning and other methods of theft, according to court documents. 

After customers experienced fraudulent activity, Bank of America allegedly gave them the runaround on customer service phone lines. Once a customer reached a representative, their fraud claims were denied allegedly “without investigation or explanation” and their accounts were frozen indefinitely. This behavior shows the bank’s failure to “implement adequate and reasonable systems, measures, and protections,” the complaint says. 

The denial of LWD customers’ fraud claims also breaches its “Zero Liability” policy, which promises to protect customers from adverse financial consequences due to fraudulent usage. 

Beaman seeks relief prohibiting Bank of America from continuing its allegedly wrongful conduct; an award of all recoverable compensatory, statutory and other damages; an award of punitive damages; reasonable attorneys’ fees; taxable costs; and pre- and post-judgment interest. 

Did you receive a Bank of America LWD debit card? Share your experience with us in the comments section below.

The plaintiff is represented by George Haines of Freedom Law Firm and Joshua B. Swigart of Swigart Law Group APC. 

The Bank of America unemployment debit cards class action lawsuit is Beaman v. Bank of America, N.A., Case No. 2:21-cv-20561, in the U.S. District Court for the District of New Jersey. 


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31 thoughts onBofA customers submit third amended complaint in unemployment benefits suit

  1. Jessemere says:

    I like a class action law suit and never received a dime

  2. ADAM HARTMAN says:

    I just wrote an extensive email to the clerk. consumer financial protection bureau after calling the administrator on the consent order from the comtroller the currency. I seem to find there.
    July 12th 2021 Applying for Business checking account. I’m still going over all the transactions Sapina paperwork.
    The main point is this june 28 2021 I had budgeted Funds in my account for business.
    A million dollar Liability insurance Policy. When I called to dispute because the money wasn’t there they said some of them have jewelry shopping and other Fraudulent charges. I cancel my card. recognizing the fraudulent activity prepaid employment development department.
    nation’s bank bank of america prepaid card.
    The consumer financial protection bureau board has asked me what I feel for Compensation and I am trying to put together what that cost. Me operating a business without liability insurance specifically Protection against this type of bank fraud. Protection consumer rights. On top of that, the community vocality community credit Union.
    Had tried to offer me another million dollar Identity theft insurance policy For coverage for certain costs and unauthorized electronic funds transfer. From a data breach Currently subpoening the Forensic financial firm findings feel I need to be involved in either California case class or the overall Bank of America Unemployment government benefits class. Documenting all allocated chart of accounts transactions with the administrative law judges Appeals board.. seeing where the Large amount Government benefits claim to been given to me that I never received. According to Attorneys Backing the claims of of starting accounts in other states and Garnishing accounts Out-of-state.
    Bringing all this to light. establishing Inaccurate credit bureau reporting. Between all this. Banking scandal. There has been a few.
    Court order judgments.
    Enlarge amount put into.
    Consumers affected Funds account that are to be distributed to the consumers that were harmed. Thankful for all the Advocacy advocacy Consumer protection writing up a financial act , law protection over consumers , financial government benefits. The privacy
    Federal income tax information.
    Information Consumer protection against market manipulation with the general accepted accounting principles. I wouldn’t see how the International monetary fund would look into this scandal and completely be shocked and appalled that these folks were even running a bank that alone taking advantage of conservative consumers most vulnerable. Devastation thank you for looking into this add me to the class.

  3. Rosalina Rangel says:

    I also experienced fraudulant activities on a BofA account in connection to an EDD claim during pandemic.

  4. Antoine Pringle says:

    Please add Antoine Pringle to this lawsuit, account was frozen mid pandemic and still open and frozen, money was stolen, filed complaint with fraud even on a recorded line they lied to me several times.

  5. Elizabeth Boudreaux says:

    I was receiving unemployment from edd. Someone stole three thousand of my edd card. I filed a claim and was never refunded my loss. I call BofA to find out more . BofA said I have no claim . I would like to part of the lawsuit.

  6. Kelly says:

    I lost everythjng my kids my home my car couldn’t pay for court fees lost my unemployment I still haven’t received and I have called more than 100 times since they have lied to me taken transactions off my acct without telling me I cant even afford toilet paper. They ruined my life and I still cant put it back togther . I have some really good notes from when I called and what they said whenblieing to etc. I have social anxiety so im struggling to find help with this issue.

  7. Douglas Mattox says:

    Please add me . I’m retarded and I don’t have a clue what I is doing.

  8. Richard J pais says:

    I was on disability, during the time I was on disability- my debit card had to be reissued 3 times due to fraud activity. Then they froze my acct and I’m not even allowed to see the balance or transactions hitting my acct. They direct me to ca. Sdi which have continued to pay me via check. However BOA insists that I was not entitled to the amounts that were deposited, which has led me to accrue a lot of late fees and possible mortgage foreclosure. As well as a direct hit to my credit report.

  9. Debby says:

    I had a claim open for some time and was mailed an approval letter from bank of America stating my claim was approved and I was supposed to be credited for the amount on the claim but when I checked my card there was only 3 dollars so I called to see what happened with the money and they said they sent the letter on accident and that my claim was denied I have never received a letter explaining to me why I didn’t get the money or why I was denied I would like to be part of this lawsuit

  10. Anthony Horst says:

    Definitely add me I’ve been locked out of my account 40 times and then one time there was actual fraud they got me for $14,000 add me to this class action lawsuit please

    1. john quintanilla says:

      same thing happen to me my claims was denied

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