Tuesday, October 4, 2011

California court rules for BofA - The Business Journal of Milwaukee:

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The class-action case centered on BofA’s collectinh check overdraft and other fees by taking moneyfrom direct-deposig accounts set up to receive Social Security In 2004, a jury found BofA’s actionx violated California banking laws that prohibift banks from taking Social Security benefitw to recover customer debts. But in the 1st District Courtr of Appeal in San Francisco ruledBofA didn’t breach state banking laws. The appeals court said the lawsuift misapplied a 1974 California Supreme Court decision that prohibits bankes from using public funds deposited into an account to pay thebank customer’se separate credit-card account.
Monday’es unanimous ruling upheld that decision. Charlotte-based BofA told the news agencgy it was pleased withthe ruling, which it said rejected “za challenge to account-balancing practicezs followed by every bank in California and acrossx the nation.”

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