Trending...
- Skool Alternatives Reddit: Skool vs Circle vs Whop - Did you join one yet?
- Cal State LA secures funding for two artificial intelligence projects from CSU
- AI Visibility: The Key to Beating Google's AI Overviews and Regaining Traffic
SAN FRANCISCO--(BUSINESS WIRE)--Cotchett, Pitre & McCarthy filed a major lawsuit late Thursday, January 14, 2021, in the U.S. District Court in San Francisco, alleging that Bank of America failed to protect the unemployment benefits of thousands of Californians. The Complaint alleges that under its exclusive contract with the California Employment Development Department (EDD), Bank of America was required to provide secure accounts for unemployment payments; but failed to provide basic security measures, such as industry-standard chip technology to safeguard EDD debit cards. As a result, thousands have lost their only lifeline due to fraudulent transactions and hacked accounts.
The Complaint further alleges that, despite its "Zero Liability" policy, Bank of America has failed to respond in a timely way to thousands of defrauded customers. The bank's ineffectual response to rampant fraud takes various forms, including not answering the customer service phone lines it advises EDD debit cardholders to call to report fraud, opening claims and then immediately closing them, failing to extend provisional credit to EDD cardholders, and the worst being freezing EDD cardholder accounts without warning or explanation.
More on The Californer
The plaintiff, San Francisco resident Jennifer Yick, described her experience, which was typical of many:
"My account was emptied by unauthorized transactions on my Bank of America EDD debit card. When I tried to report the fraud to the bank, I was repeatedly disconnected, told to call back later, transferred to various departments to no end."
To date, like so many out-of-work Californians, she has never been reimbursed for any of the unauthorized transactions on her EDD debit card, despite Bank of America's "No Liability" policy.
According to Brian Danitz, a partner at Cotchett, Pitre & McCarthy, representing the many defrauded Californians:
"Bank of America failed to safeguard the accounts of EDD debit cardholders and then failed to handle fraud claims when made. The volume of unauthorized transactions was completely foreseeable, given the lack of basic security measures. Hundreds of millions in California unemployment benefits have already been lost to fraud. Bank of America's failure to help these fraud victims in a timely way is unconscionable and must be addressed."
Andrew Kirtley of Cotchett, Pitre & McCarthy, stated:
"It's no secret that this pandemic has been economically devastating for millions of Californians. For many, EDD unemployment benefits are a matter of survival. As alleged in the complaint, Bank of America utterly failed to prevent a massive theft of EDD benefits form Bank of America accounts, and then made it next to impossible for account holders to get reimbursed. EDD benefits recipients may not be Bank of America's most lucrative customers, but they are among its most important. This lawsuit is a wake-up call for Bank of America."
More on The Californer
Noorjahan Rahman of Cotchett, Pitre & McCarthy, put it bluntly:
"When a big corporation like Bank of America contracts with the State to administer unemployment benefits, it's not just providing a service, it's taking on a solemn duty to protect some of the most vulnerable in society. As alleged, Bank of America has utterly failed to uphold that duty."
The Complaint alleges that by failing to safeguard these state benefits from fraud and failing to address claims in a timely manner, Bank of America violated the California Consumer Privacy Act, California's Unfair Competition Law, and Regulation E of the federal Electronic Funds Transfer Act; breached its contract with EDD cardholders; failed to warn EDD cardholders about the risks associated with its EDD debit cards; and negligently performed its contract with the California EDD, among other violations of law.
The lawsuit is Yick v. Bank of America, Case No. 3:21-cv-00376, in the U.S. District Court for the Northern District of California.
About Cotchett, Pitre & McCarthy, LLP
Cotchett, Pitre & McCarthy, LLP engages exclusively in litigation and trials and has earned a national reputation for its dedication to prosecuting or defending socially just actions. To learn more about the firm, visit www.cpmlegal.com
The Complaint further alleges that, despite its "Zero Liability" policy, Bank of America has failed to respond in a timely way to thousands of defrauded customers. The bank's ineffectual response to rampant fraud takes various forms, including not answering the customer service phone lines it advises EDD debit cardholders to call to report fraud, opening claims and then immediately closing them, failing to extend provisional credit to EDD cardholders, and the worst being freezing EDD cardholder accounts without warning or explanation.
More on The Californer
- California: Governor Newsom statement on the court temporarily blocking the Trump Administration's unlawful immigration tactics in the Los Angeles area
- Governor Newsom urges Californians to take precautions as state endures triple digit heat, smoky conditions
- Yvette Kendall Secures $6 Million Deal with The Sessions Studios for Horror Thriller, "NORTH"
- Buy The Crave Launches Premium Creatine and Natural Wellness Supplements for Modern Lifestyles
- Long Beach Parks, Recreation and Marine's Homeland Cultural Center Presents DanceFest at Cesar Chavez Park Amphitheater on August 16
The plaintiff, San Francisco resident Jennifer Yick, described her experience, which was typical of many:
"My account was emptied by unauthorized transactions on my Bank of America EDD debit card. When I tried to report the fraud to the bank, I was repeatedly disconnected, told to call back later, transferred to various departments to no end."
To date, like so many out-of-work Californians, she has never been reimbursed for any of the unauthorized transactions on her EDD debit card, despite Bank of America's "No Liability" policy.
According to Brian Danitz, a partner at Cotchett, Pitre & McCarthy, representing the many defrauded Californians:
"Bank of America failed to safeguard the accounts of EDD debit cardholders and then failed to handle fraud claims when made. The volume of unauthorized transactions was completely foreseeable, given the lack of basic security measures. Hundreds of millions in California unemployment benefits have already been lost to fraud. Bank of America's failure to help these fraud victims in a timely way is unconscionable and must be addressed."
Andrew Kirtley of Cotchett, Pitre & McCarthy, stated:
"It's no secret that this pandemic has been economically devastating for millions of Californians. For many, EDD unemployment benefits are a matter of survival. As alleged in the complaint, Bank of America utterly failed to prevent a massive theft of EDD benefits form Bank of America accounts, and then made it next to impossible for account holders to get reimbursed. EDD benefits recipients may not be Bank of America's most lucrative customers, but they are among its most important. This lawsuit is a wake-up call for Bank of America."
More on The Californer
- Sisu, a Portrait of Grit, Connection and Triumph, Premieres on Documentary Showcase
- New Liz Taylor Book Coming Soon: Chasing Elizabeth Taylor
- City of Long Beach Experienced a 4% Decrease in Fireworks-Related Reports on July 4
- The Blue Luna Encourages Local Schools to Take Steps to Enhance Safety for Students and Staff
- Wise Business Plans Launches Turnkey Startup Packages to Help Entrepreneurs Start and Scale
Noorjahan Rahman of Cotchett, Pitre & McCarthy, put it bluntly:
"When a big corporation like Bank of America contracts with the State to administer unemployment benefits, it's not just providing a service, it's taking on a solemn duty to protect some of the most vulnerable in society. As alleged, Bank of America has utterly failed to uphold that duty."
The Complaint alleges that by failing to safeguard these state benefits from fraud and failing to address claims in a timely manner, Bank of America violated the California Consumer Privacy Act, California's Unfair Competition Law, and Regulation E of the federal Electronic Funds Transfer Act; breached its contract with EDD cardholders; failed to warn EDD cardholders about the risks associated with its EDD debit cards; and negligently performed its contract with the California EDD, among other violations of law.
The lawsuit is Yick v. Bank of America, Case No. 3:21-cv-00376, in the U.S. District Court for the Northern District of California.
About Cotchett, Pitre & McCarthy, LLP
Cotchett, Pitre & McCarthy, LLP engages exclusively in litigation and trials and has earned a national reputation for its dedication to prosecuting or defending socially just actions. To learn more about the firm, visit www.cpmlegal.com
Filed Under: Business
0 Comments
Latest on The Californer
- Easton & Easton, LLP Files Suit Against The Dwelling Place Anaheim & Vineyard USA Over Abuse Allegations
- AI Visibility: The Key to Beating Google's AI Overviews and Regaining Traffic
- First Partner highlights apprenticeship program helping underrepresented youth break into careers in California's iconic entertainment industry
- Stuck Doing Math or Figuring Out Life's Numbers? Calculator.now Makes It Stupidly Simple
- Cal State LA secures funding for two artificial intelligence projects from CSU
- Colbert Packaging Announces WBENC Recognition
- New Mobile Car Detailing Platform Connects Drivers with On-Demand Local Pros
- Over the past three months, California seized $476 million worth of unlicensed cannabis products
- California scores more clean energy records: 9 in 10 days this year partially powered by 100% clean energy
- "Mobile Suit Gundam" Takes Over San Diego Comic-Con 2025
- DivX Empowers Media Enthusiasts with Free Expert Guides for Advanced MP4 Management
- Assent Expands Executive Team to Accelerate Global Growth & Innovation
- The World's Largest Green Economic Revolution Emerges as Nature, Tech, and Finance Converge
- Hamilton Zanze Sponsors the Acquisition of Two Garden-Style Communities in Reno Area
- Meet a Scientologist Captures Greece's Timeless Beauty with Videographer Lambros Malamas
- Vinnetwork Unveils Decentralized AI Platform with Vinnetwork(VIN) Token to Challenge Tech Giants' Data Monopoly
- Moovs Launches Advanced Contact Center Solution for Large-Scale Transportation Operations
- Centennial Flyers to Become Colorado's First Launch Customer for All-Electric B23 Energic Aircraft
- Second Annual Artists' Rights Advocate Award to Be Presented at The Comedy Store on July 17th
- Pyro Marketing Opens New Digital Marketing Company to Power Growth for Fitness and Ecommerce Brands