Bank of America can take Social Security benefits to cover overdraft fees

[jeffrey]

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.

The bank customers who had stood to benefit from the award included 1.1 million California residents receiving government assistance. James C. Sturdevant, who represented the Social Security recipients, said the award, with interest, would have cost Bank of America more than $2 billion...

Bank of America wins appeal on overdraft fees - Los Angeles Times

[platinum]

The government should charge Bank of America an overdraft fee -- just saying.

[kork13]

^^^ LOL!!!! Bravo, platinum... hahaha

[wincrasher]

So let me get this straight...

People who get social security deposits can then turn around, bounce checks, thus overdrafting their accounts and do this for free because it's state law.

But I will get charged $39 plus daily penatly if I do it.

[simpletron]

wincrasher, that is what the original ruling said. this court overruled the previous ruling.

Although banks cannot take funds from a government recipient's account to recover debt on a bank-issued credit card, the government money can be tapped to cover bank fees, the state high court said.