The California Supreme Court has effectively reversed a 2004 San Francisco trial court decision that ordered BofA to pay $284.4 million in damages to more than 1.1 million customers. The California Supreme Court ruled that banks can tap Social Security benefits in bank accounts to cover bounced-check fees, a practice consumer advocates say is abusive because Federal law prohibits Social Security benefits from being seized to pay a debt. California law apparently doesn’t consider overdraft fees to be debt, so the fee party will be allowed to rock on indefinitely.
Bank of America Wins Right To Seize Social Security Benefits To Pay Overdraft Fees
By June 5, 2009