Bank of America Wins Ruling on $1.6 Billion Verdict
June 8, 2009
By MoneyAisle
According to Bloomberg, Bank of America will not be required to pay $1.6 billion in a suit that claimed the company took overdraft fees illegally out of Social Security direct deposits.
“The lawsuit claimed California law prohibits banks from taking exempt funds, such as Social Security benefits, from customers’ accounts. The bank continued the process anyway, lawyers for the customers argued, deducting as much as $160 a day out of one customer’s account.”
In issuing the verdict, the California Supreme Court upheld a 2006 appeals court ruling that resulted in the reversal of the original 2004 verdict against the bank.