In a new lawsuit, a Black woman with disabilities has accused Bank of America of illegal racial stereotyping and discrimination for allegedly placing a hold on her large Social Security disability benefits settlement check, allegedly out of suspicion of illicit activity, when the bank allegedly doesn't do the same with similar checks deposited by those of other races.
Plaintiff Charlotte Warren filed suit again Bank of America, NA. (BofA) on May 23 in Cook County Circuit Court. The lawsuit accuses BofA of violating the federal Expedited Funds Availability Act and the terms of its depositors' agreement by allegedly putting an unnecessary hold on her Social Security Disability (SSA) benefits check, then closing her account and refusing to return her deposit.
Under the Expedited Funds Availability Act, financial institutions that process deposits are required to make funds “available for withdrawal not later than the business day after the business day on which such funds are deposited in the case of a check which is drawn on the Treasury of the United States; and endorsed only by the person to whom it was issued.”
According to the complaint, Warren has suffered from severe disabilities and has sought a resolution with the Social Security Administration over disability claims since 2013. With her claims status resolved, Warren, who is elderly and African American, received a check from the U.S. Treasury for her disability payment in the amount of $24,518.
In mid April, she opened an Advantage Plus checking account and attempted to deposit the endorsed Treasury check to open her new account. She received a confirmation that her deposit was received and a hold had been placed on it until April 24. On April 18, she received a letter from BofA that her funds could not be accessed and a extension had been placed on her funds until April 26, indicating the account was under investigation.
According to the complaint, this decision ran afoul of BofA’s policy, which "is to make funds from U.S. Treasury checks that are payable to you available no later than the first business day after the day of the deposit.”
Warren was told by BofA staff that the bank was investigating. The staff explained that such holds were placed on accounts when the bank suspects the funds stemmed from illegal drug activities. According to the complaint, there was no objective basis for BofA to presume that a U.S. Treasury check was related to any illegal drug or other illicit activity.
Warren alleges the bank's decision to hold her US Treasury check wentagainst BofA's own policy and the guidelines of federal law. Therefore she alleges, she could only conclude BofA was basing their unilateral decision on "racial stereotypes."
She asserts her Social Security counsel told her none of "his white or Asian clients" ever encoutered "similar holds or investigations" when depositing large Social Security disabiity settlement checks with Bank of America.
In the lawsuit, Warren sought the return of her $24,518, plus interest and punitive damages, court costs and legal fees.
Warren is represented by attorneys Gail S. Eisenberg and Ross M. Good, of the firm of Loftus & Eisenberg, of Chicago.