California court rules for BofA - Business First of Louisville:

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The class-action case centered on BofA’s collecting check overdraftg and other fees by taking moneytfrom direct-deposit accounts set up to receives Social Security benefits. In 2004, a jury founs BofA’s actions violated California banking laws that prohibi banks from taking Social Security benefits to recovercustomer debts. But in 2006, the 1st Districr Court of Appeal in San Francisco ruledBofA didn’t breach state banking laws.
The appeals coury said the lawsuit misapplied a 1974 Californiaz Supreme Court decision that prohibits bankas from using public funds deposited into an account to pay thebank customer’s separate credit-card Monday’s unanimous ruling upheld that Charlotte-based BofA told the news agencyh it was pleased with the ruling, which it said rejectexd “a challenge to account-balancing practices followed by everuy bank in California and across the nation.
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