Bank of America wants out of its contract with California EDD, which is grappling with fraud and lawsuit

California's Employment Development Department just renewed its partnership with Bank of America, but the bank wants out immediately. Photo by Shutterstock.

California's Employment Development Department (EDD) just renewed its partnership with Bank of America (BOA). That means the bank will continue to deliver benefits on EDD debit cards for the foreseeable future. But BOA says it now wants out of its partnership with the organization. This comes after a federal judge last month said Bank of America has to reopen thousands of legitimate claims that the bank had cut off — as part of a flawed automatic fraud detection system. And there are still billions of dollars of unemployment fraud under investigation. 

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