Bank of America Accused of Unfairly Denying Fraud Claims

Bank of America is facing a class-action lawsuit from a customer who claims the bank illegally refused to reimburse her for unauthorized transactions.

Accusations of Illegal Practices

Kimberly Dennie alleges that her Bank of America debit card was stolen in February, and unauthorized transactions were made on her account. She promptly reported the card as lost and filed a claim for $3,000, which included a police report.

However, the lawsuit states that Bank of America quickly denied the claim, accusing Dennie of authorizing the transactions without providing any evidence.

Bank’s Burden of Proof Ignored

The lawsuit argues that it is the bank’s responsibility to prove that disputed transactions were authorized, not the customer’s. Bank of America’s failure to do so is alleged to be unlawful and unfair.

Boilerplate Denial Letters

The lawsuit also accuses Bank of America of routinely sending out vague denial letters that do not provide any explanation for the denial. This is alleged to violate the Electronic Funds Transfer Act, which requires financial institutions to provide written explanations for denials.

Legal Action and Damages

The lawsuit was filed in federal court in North Carolina. Dennie is seeking actual damages, punitive damages, and an injunction to prevent the bank from continuing its alleged illegal practices.