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Bank of America Fixes Ordered After Hacked Customers ‘Go Hungry’

  • Judge found that account holders suffered ‘irreparable harm’
  • Bank says it’s working to improve unemployment benefit process
Bank Of America Locations Ahead Of Earnings Figures
Photographer: David Paul Morris/Bloomberg

Bank of America Corp. was ordered by a judge to change its practices after thousands of unemployed California customers receiving public benefits complained that when their prepaid debit cards were hacked, the bank made matters worse by treating them like criminals.

In response to allegations to that the bank was refusing to investigate account holder claims and in some cases freezing accounts that weren’t affected by fraud, U.S. District Judge Vince Chhabria on Tuesday directed the bank to take several steps to improve its processes. The reforms were finalized in an agreement between the bank and lawyers for the customers who sued in January.