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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
I am attempting to start a class action against Bank of America in Kentucky for the exact same issues with pandemic unemployment benefits stolen or unauthorized transactions from unauthorized persons.
Add me, I too had a similar experience with edd in California.I had over $8,000 taken from my account by someone named J.Kumor who somehow added them selves as authorized on the account and they froze the remaining $5,000 in my account.ive talked to both bank of America and edd about it and each time they point the finger at the other one and tell me to contact them to lift the hold.At this point I’ve basically gave up…
Bank of America allowed my California EDD benefits to be wiped out and stolen via an unauthorized transfer of funds by someone in Corpus Christi, TX on three separate occasions in August 2021, September 2021, and October 2021. I filed claims to both the EDD and BofA’s fraud departments but still have yet to hear from them concerning resolve. I am requesting assistance regarding this matter please.
Bank of america wont resolve my claim which has been in pending status for over a year and a half. They owe me 20,800.00 that were stolen from my eddd account. They closed my account the day after making my claim. Then told me edd did but they didn’t. Edd made them reopen my account after verifying me then they froze my account until I went to a branch in person with two forms of ID. Unfroze my account after and mailed me a debit card with a chip that had a zero balance. I’ve been fighting this for a year and a half. They won’t provide me with any answer other than my case is pending they refuse to honor their agreement to give me provisional credit while they undergo their investigation. They won’t let me talk to a supervisor when I call. I call daily and they tell me the exact same thing. My claim is pending and they refuse to complete or resolve my case. I need my money. Its been a year and a half. Please help me. I’m stuck
Add me! They let somebody get away with stealing $400 from me, didn’t answer their phone for three months and then said that it was my fault for not being able to get in contact with them and they never paid me back
They denied my claims multiple times….froze my account 2x and denied my identity. Then once they “verified my identity” they shorted me and the amounts I was supposed to get. I also would have to call to verify purchases otherwise they would block it
Problems with unemployment bank card
How to I find out if there js a on going lawsuit for edd accounts . they are not helping me. 16000 came up missing and it took months to get access to the statements. Once made claims I got 6000 back and the one for 10’000 is being denied do to no error the keep telling me they will put it up to reconsider and. They still deny.i ask to speak to the investigators and told its not possible. How the he’ll can they investigate something and not speak to me. The rep says they review the notes left on the account. So I’m suppose to be ok with leaving this decision up to a investigator that won’t call me and only refer to the comments left by representatives that have gave me wrong information. Incorrectly files half my claim. Told me they put it in for escalation per reconsideration and upon checking status never did and failed to note anything. Months of thw same routine with my spoused advocates that and I quote ” care so deeply and are doing everything possible to see that the issue is resolved and money ia returned.” The ones who apologized foe the inconvenience and will file a complaint on my behalf but don’t submit anything they say for my account. That’s the liaison between me and the investigators. How the he’ll is it that instead of me having to call in and get the same bullshit scripted. Response a hundred times but won’t have an investigator call once to explain how one calme ia approved but not the other. Or how the credit ia removed from my account that is not over 5000 overdrawn. Or why the rep is telling me don’t worry bout the negative balance its not going to affect me at all. That’s so stupid how can they say almost 6000 is negative and they tell me they don’t want me to pay it back. They said the account ia not my account…the account clearing in my legal name with all my information and ssn is not actually my account so it won’t effect me in anyway being in the whole 6000. That don’t even sound right. So now I’m pissed and need to figure this . the whole thing is so screwed up. They gave me a credit and issued a new card that they shut off almost daily for suspicious activity. But let some one who never had a physical card use it dor dam. Near a year with out shitting it down once. Where is the sence in that. Then tell me it’s been to to long to claim the stolen money I didnt know even was there till a year later. I was told to verify. For everyweek and wait for id me. Never was told I got payment. Once I finally got to talk to someone I find out they been paying me. Then call the bank to find out I got 16 cents . tbis is a nightmare
Add me
Stole my money BofA did