EDD drops Bank of America as unemployment payment contractor

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Wednesday, December 6, 2023
EDD drops Bank of America as payment contractor
Big news for those collecting unemployment payments. Bank of America is out and Money Network is in. Here's what to know about the change.

SAN FRANCISCO (KGO) -- Big news for those collecting unemployment payments. Bank of America is out and Money Network is in.

You may remember during the pandemic there were huge problems with getting unemployment benefits paid to those who were eligible.

Bank of America was accused of being responsible for many of the delays.

VIDEO: EDD takes tax refund, garnishes wages of man who reported unemployment fraud in his name

Some ordinary citizens are paying the price as the California EDD tries to reclaim money given to scammers.

Eventually the bank announced it wanted out, but the EDD kept the bank as the payment company.

That changes on Feb. 15 when the Money Network takes over by issuing debit cards just as Bank of America has been doing.

However, the EDD says a few months later the Money Network will offer direct deposits.

MORE: EDD estimates nearly $20 billion paid to fraudsters since start of pandemic

Consumer advocates had been asking for this for years.

Information about the changeover will be sent to those receiving payments from the EDD.

Take a look at more stories and videos by Michael Finney and 7 On Your Side.

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. Due to the high volume of emails we receive, please allow 3-5 business days for a response.



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