EDD problems persist as class action lawsuit filed against Bank of America

David Koning says he was the victim of fraud and had $16,000 taken out of his EDD Bank of America accounts.

"It's very frustrating because a lot of people could get into people's accounts," says Koning.

He is also dealing with serious health issues.

"I was born with just half a heart in my body and I was dead for six minutes and came back to life four times," said Koning who posted his story on YouTube. He says he needs that money returned for another surgery.

"I don't know what to do right now," he said.

He's not alone.

The Employment Development Department has millions of claims on hold. There was also a lockdown of accounts due to fraud. Now a class action lawsuit has been filed against Bank of America.

"Bank of America should have known this was coming, they did not provide basic security measures. Instead they gave cards without a chip, just with a magnetic stripe, which is easily subject to fraud," said attorney Brian Danitz who filed the suit.
The EDD acknowledges issues through its online system. It says it is working to re-open claims for those who are eligible and have money in their accounts.

"The EDD is working diligently through these claims to automatically make those weeks available and will notify your constituents when they have weeks to certify for ongoing benefits."

Koning says he's tried dealing with EDD and Bank of America but so far can't get his problem fixed.

"I been talking to EDD every day and they say they sent the paperwork over but when I talked to Bank of America, they say they never got it," said Koning.

"Bank of America should allow people to have their claims heard. Right now thousands of claims are not being processed by Bank of America," said Danitz.

The governor announced his budget last week but didn't say anything about the problems at the EDD. A number of legislators are pushing for an investigation.

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