![]() ![]() "Through Money Network, EDD customers will have access to secure chip cards and tap-to-pay technology to help protect EDD customers against fraud and skimming attacks." "Fiserv has the resources and secure systems we need to support the large number of customers who rely on EDD benefit programs, especially during periods of high demand in economic downturns," the department spokesperson said in an email. The department heaped praise on its new partner. A department spokesperson said that as BofA's contract was ending, the agency picked Money Network in a competitive procurement process. ![]() But the state agency had the option to extend BofA's contract for two years, which it did in 2021 and again in 2023. The bank had tried, unsuccessfully, to exit its contract with the Employment Development Department in mid-2021 due to financial risks. Bank to pay $36 million for violations related to its prepaid card program to distribute unemployment benefits during the pandemic.īofA had held the contract to administer California benefits since 2010. In 2022, BofA was fined $225 million by federal regulators over allegations that it unlawfully froze consumer accounts in California, and for engaging in "unsafe or unsound practices" in distributing unemployment, disability and pandemic-relief benefits to consumers in 12 states. Bank of America's prepaid debit cards will remain active until April 15, which will mark the end of the $3.2 trillion-asset Charlotte, North Carolina, bank's involvement in distributing government unemployment benefits.īofA faced financial and reputational risks in managing prepaid debit cards, which were heavy fraud targets during the pandemic. ![]()
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