California unemployment: Lawmakers demand to know why Bank of America is draining EDD accounts
SAN FRANCISCO (KGO) -- 7 on Your Side has been reporting on the latest difficulty facing unemployed Californians. Bank of America has been draining money out of thousands of EDD bank accounts -- leaving many with no money to live on.
RELATED: California prosecutors reveal how Scott Peterson's name may be linked to unemployment scam
Now a bipartisan group of 59 state lawmakers has fired off a letter to Bank of America's CEO demanding to know why it's happening.
The bank is vague with answers, only citing the Employment Development Department's crackdown on fraud but lawmakers say it's taking money from honest workers just when they need it most.
7 on Your Side told you about Michael Conant, a laid-off hotel worker in San Francisco.
He watched as all $16,800 evaporated from his EDD account.
"You guys took $16,000 from the account. Where did it go?" he asked. "They left nothing in there. There was nothing in the account," said Conant.
RELATED: EDD mistakenly takes $10,000 from SF man's account in attempt to fight suspected fraud
The same thing happened to Anthony Serafino of San Francisco. His EDD account was suddenly frozen, and when the bank unlocked it, all his money was gone.
"The money got taken away. They froze my account and took the money," said Serafino. "It was in different increments, but it added up to $10,000."
Now, unemployed workers across California are flooding 7 on Your Side and the offices of many state lawmakers, saying benefits disappeared from their accounts too.
"Bank of America has not provided any answers as to why this is happening. There's a bit of finger pointing going on and it's absolutely unacceptable. It's just another example of failure of our unemployment system during this pandemic and recession," said Assemblymember David Chiu (D - San Francisco).
EXCLUSIVE: Insiders reveal how scammers are stealing millions in CA unemployment benefits
Now, a bipartisan group of 59 state legislators is demanding answers from Bank of America, firing off this letter to CEO Brian Moynihan, saying: "Every legislative office in the state has experienced an unprecedented number of constituents" asking to resolve problems with EDD and Bank of America.
The letter poses a list of questions to be answered by Tuesday, Dec. 1.
Among them:
- "Why is Bank of America taking funds and freezing (debit) cards?"
- "What needs to happen... to have the funds restored?"
- "Has Bank of America had to pay penalties... due to fraud on its cards?"
Bank of America tells us it will respond directly to legislators, but in general would say: "We are working with the state and law enforcement to identify and take action against fraudulent applicants, protect taxpayer money and ensure that legitimate applicants can access their benefits."
It was not clear if the bank will provide any specific answers to all these questions.
"This involves a contract between the state and the Bank of America and from my perspective we're going to have to revisit that contract because it is clearly failing the people of California," said Assemblymember Chiu.
Assemblymember Chiu, who signed the letter, says workers are losing benefits when they need them most.
"They're having trouble putting food on the table or paying the rent... for the debit cards to lead to draining of funds is not acceptable," said Assemblymember Chiu.
RELATED: 'People need help': As many as 1 in every 3 EDD claims is fraudulent, security firm says
"I'm on a beyond-a-shoestring budget. I never felt food insecure my whole life," said Conant. "There's emotions that go behind that. You feel cheated, more or less."
Anthony Serafino concurs. "It was stressful. Yeah, really stressful."
We'll be watching to see how Bank of America responds. If your account is frozen or has money removed, let 7 on Your Side know.
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
Have a question for Michael and the 7 On Your Side team? Fill out the form HERE!
7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case.
App users: For a better experience, click here to view the full map in a new window
RELATED STORIES & VIDEOS:
- EDD shuts down 350,000 accounts for suspected fraud, but legitimate workers still left with no money
- Unemployment claims paused for 2 weeks as report reveals 600K awaiting benefits in EDD backlog
- Coronavirus employment recovery will not be equal across Bay Area, new report predicts
- $2.5 million in EDD fraud leads to arrest of 44 suspects in Beverly Hills, police say
- CA begins sending extra $300 per week in unemployment benefits, but many will not receive the supplemental aid
- California lawmakers to conduct emergency audit of EDD
- California woman's stolen information used to collect thousands in unemployment benefits
- Proposed $300 unemployment benefit 'inadequate,' Newsom says CA working on solutions
- California EDD: The most commonly asked questions we get about unemployment and PUA
- California woman shares hack for getting through EDD's overloaded unemployment helpline
- Florida man erroneously receives 12 letters from the California EDD
- California state senators request Newsom create 24-hour helpline for EDD
- Governor Gavin Newsom unveils new task force to tackle EDD backlog
- Out-of-work Californians finally receive benefits, only to be mysteriously cut off
- Unemployed workers share how they got through EDD system to finally receive benefits
- FAQ with EDD: From getting through on the phone to $600 payments, 7 On Your Side gets your questions answered
