Bank Of America Can Take Social Security Benefits To Cover Overdraft Fees

07/03/2009 05:12 am ET | Updated May 25, 2011
  • Maura Dolan Los Angeles Times

The California Supreme Court unanimously overturned a billion-dollar class-action award against Bank of America Corp. on Monday, ruling that banks can collect overdraft fees from accounts in which government benefits intended for subsistence are directly deposited.

The ruling threw out a 2004 verdict by a San Francisco jury that found the bank violated state law by taking fees for insufficient funds from accounts set up to receive Social Security benefits.

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