Bank of America EDD class action overview:
- Who: A California woman has filed a class action lawsuit against Bank of America N.A.
- Why: The plaintiff claims the bank unlawfully pockets interest and other investment income earned on California benefits payments.
- Where: The Bank of America class action was filed in California federal court.
A new class action lawsuit claims Bank of America unlawfully pockets interest and other investment income earned on California benefits payments such as unemployment, disability, and Paid Family Leave.
Plaintiff Carneshia Moland filed the class action complaint against Bank of America on April 1 in California federal court, alleging violations of state and federal laws.
According to the lawsuit, Bank of America unlawfully retains earnings realized on funds owned by California benefits recipients, in violation of state law.
The plaintiff claims that the bank, which was designated as the financial agent for California’s Employment Development Department (EDD) benefits program, held interest and investment income on funds as “special deposits.” Under California law, only the owner of the special deposit is entitled to such earnings, the plaintiff claims.
Bank of America made ‘tens of millions’ each year from EDD deposits, plaintiff says
Moland alleges that Bank of America earns tens of millions of dollars each year in interest and investment income on the funds deposited into California EDD Card accounts. These accounts are used by California residents to receive unemployment, disability and paid family leave benefits electronically.
The plaintiff claims that the bank’s actions violate California law, which states that interest or other earnings on a fund of money are the property of the owner of the fund.
The plaintiff further alleges that Bank of America’s actions amount to conversion, breach of fiduciary duty and violations of the California Unfair Competition Law.
As a result of the bank’s actions, Moland claims that she and other class members have suffered injury and damages. The lawsuit seeks to represent a class of all individuals in California who maintained EDD Card accounts with Bank of America during the relevant time period.
The plaintiff is demanding a jury trial and is requesting injunctive relief, monetary damages and restitution for herself and the proposed class.
Earlier this year, Bank of America agreed to pay $2.85 million to resolve allegations that it violated New York’s Exempt Income Protection Act by charging fees on accounts subject to attachment or garnishment.
What do you think of the claims in this Bank of America class action? Let us know in the comments.
The plaintiff is represented by Scott Edelsberg of Edelsberg Law P.A.
The Bank of America class action lawsuit is Moland v. Bank of America N.A., Case No. 1:25-cv-00380-JLT-SAB, in the U.S. District Court for the Eastern District of California.
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128 thoughts onClass action claims BofA pocketed interest meant for Calif. EDD debit card recipients
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Bank of America has stolen so much money from people and it makes me mad that they ask for proof when is clear on my bank statement and my fraudulent claims that I made to them and sent me any compensation after freezing my account and then closing my account I was sent and they paid out my claims 4 years after the fact