KANSAS CITY, Mo. (CN) – Bank of America made millions of dollars from its customers by prematurely withdrawing money from their checking accounts, a class action claims in Jackson County Court. The class claims the bank withdraws money electronically from accounts before paper checks are presented, though BofA advertises that it does not do that.
The class claims Bank of America takes customers’ money and puts it into a separate account that it controls during a float period. The bank allegedly earns millions of dollars from the interest it gains from the premature withdrawals, while at the same time it exposes customers to unwarranted service fees and insufficient funds charges.
Bank of America does not pay customers interest for the float period and does not disclose that it earns the interest, the complaint states.
The class demands damages, disgorgement and refunds of all service fees and insufficient fund charges customers incurred during the float period. It is represented by John Edgar.