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

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.

Read the whole story: Los Angeles Times

Comments

[citizensrus]

02:51 PM on 06/06/2009

Who wants to put their money in a bank that 'hides" their losses?

[Javaline]

01:02 PM on 06/03/2009

People would do well to move their money into smaller, locally owned banks or community credit unions. I used to bank with BofA, then Wells Fargo. After years of balancing my accounts to the penny they started showing up with abnormal discrepancies every month, always in the bank's favor. One year I started bouncing checks all over the place and I knew damn well I'd made deposits, and after hours of wrangling with the accountants I discovered they were holding off logging my deposits for up to 5 days because I wasn't a business account. Ever since that fiasco I have used credit unions and local banks and have not had a single problem since. In addition, the credit card accounts have much lower interest rates on them than banks. Just a suggestion...

[Krisfr]

11:25 AM on 06/03/2009

There needs to be a bank FOR the People not f the people.....

ONE day a bank will come along that will help its customers, and that bank will have a lot more business than it can handle. We need local banks with local staff, that have to look their neighbors in the face over a 35 dollar overdraft fee for 39 cents... that's what I am talking about...

[ellawensmom]

11:06 AM on 06/03/2009

BOO!
This is why I hate banks.

[woody7]

10:08 AM on 06/03/2009

I had a second Mortgage with Bof A years ago, which I paid off a couple years early, and I was proudly granted the "early Payment privilege " which cost me an extra 1500$.Yes it was in the contract, but my loan was with a really low interest rate, and the prevailing rate was quite higher. I quit doing business with them and haven't regretted it. I have a six figure income, so s c r ewem!

[Lilly06]

08:33 AM on 06/03/2009

This is why I say the law is subject to interpretation. I'm sure in this case, the Supreme Court took into consideration the current economic climate and was on the side of the corporate world as opposed to the average American. I wasn't in court so can't conclude on this matter.

I can state that I totally disagree with the decision. These are government funds and should not be subject to any kind of overdraft fees.

The judicial system has demonstrated too many times that the law is justice only to those that can afford it. Its stewardship is to the American people and these judges need to start remembering that.

[jetphixer]

07:48 AM on 06/03/2009

MY ? is also the answer to this piece of news! Why do people even deal with BofA or Citi? If folks use these institutions i do not feel sorry for them. Just find a good local bank. These corps need customers. NUFF said

[babybelle]

09:58 AM on 06/03/2009

I agree Jetphixer !
Why do people bank at BOA and Citi ??
There are much better places to bank at.

[hellinabucket]

10:32 AM on 06/03/2009

scr*w all the banks-open your account at a credit union!

[banker67]

07:41 AM on 06/03/2009

And remember, BOA can CREATE overdrafts any time simply by saying that the deposit did not arrive until after the fee was assessed.
Who's going to say the deposit did NOT arrive 30 seconds before BOA scored the $35 overdraft fee? Who? Their word, their records, no one to complain -- unless it's to the courts.
Oops.
Yes, folks, yet another colossal disgrace for California.

[RustyPatina]

07:39 AM on 06/03/2009

"Entirely legal" - when are these people going to start doing business on the basis of "right" or "ethical"? Probably never, that's why they should be crushed and discarded like the bloodsucking parasites they are.

[Rich Hosking]

07:31 AM on 06/03/2009

Now they can raid your personal finances, in addition to the public till. Great. And fully supported by our government.
Who would have believed it?!

There is no end to what money can buy!!

[neige]

07:19 AM on 06/03/2009

Bank of America is one of the most crooked corporations out there.

[HazerX]

05:13 AM on 06/03/2009

When you're already bankrupt and broke, I dont think you give a rats arse what BofA thinks about anything.

Cash, and Cash only. You, Me and America, do *not* need BofA or their ilk. Let them rot.

[xenophrenia]

03:39 AM on 06/03/2009

Pitchforks and torches people - pitchforks and torches ; ) ...

[TheHandyman]

03:16 AM on 06/03/2009

Another anti-People ruling from the California Supreme Court on the heels of their ignorant Prop 8 ruling. If ever there were judges who need to be kicked out of office these are the folks.

[WhatDaBleep]

02:31 AM on 06/03/2009

It is time to open hunting season on Bankers - that will stop this Bushit from continually happening.