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Bank of America bondsFour Washington customers have filed a class action lawsuit against Bank of America, U.S. Bank, and KeyCorp, saying that the financial institutions do not honor bonds.

Plaintiffs Claire Douglas, Mary Joan Isabell, Heather Carlon, and Gina Pawolski say they are owners of a bonds or certificates that Bank of America and the other organizations failed to honor, causing them to lose money.

The Bank of America class action claims that the financial institutions’ failure to honor the bonds is a violation of federal law.

In Douglas, Carlon, and Pawolski’s cases, they say that they are owners of bonds issued by Rainier National Bank. Isabell says that she is the owner of a bank certificate issued by Seattle First National Bank.

Allegedly, Bank of America, U.S. Bank National Association, and KeyCorp all hold a successor interest of Rainier National Bank and in Seattle-First National Bank, meaning that the organizations are responsible for certain assets, liabilities, and obligations of the two banks.

According to the plaintiffs, when the three organizations acquired the two banks after a merger they also acquired the responsibility to honor bonds.

The customers explain that they deposited money in exchange for bank bonds, certificates, bills, and time deposits.

Allegedly, the terms on these items – broadly known as bonds – require the customer who purchased the bond to exchange the bond for the amount they paid for it, plus interest.

The Bank of America bond redemption class action lawsuit says that, when the customers tried to redeem their bonds, the bank refused to honor them. Allegedly, customers with bonds are told by Bank of America that their bonds are worthless and cannot be redeemed.

To support the claim that Bank of America has failed to honor the bonds, the customers say that the bank has already faced other allegations that it failed to honor bonds. Despite this legal action, the customers argue that the bank continues to not honor bonds. 

The Bank of America, U.S. Bank bond class action lawsuit argues that this failure to redeem bonds is a breach of contract and violates the Washington State Consumer Protection Act.

Allegedly, Douglas, Isabell, Carlon, and Pawolski were finically injured by the bank because they did not receive the money that they were contractually entitled to. 

They seek damages on behalf of themselves and all similarly affected consumers, saying that a class action lawsuit is the best way to pursue the issue, because many bonds are small, and independently litigating each issue of an unpaid bond would be impractical.

Do you have a bond? Tell us about it in the comments below.

The customers are represented by Richard E. Spoonemore and Chris R. Youtz of Sirianni Youth Spoonemore Hamburger PLLC, and Eric J. Harrison of Attorney West Seattle.

The Bank of America Bond Class Action Lawsuit is Claire Douglas, et al. v. Bank of America NA, et al., Case No. 2:20-cv-00193, in the U.S. District Court for the Western District of Washington at Seattle.

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