California court rules for BofA - Silicon Valley / San Jose Business Journal:

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The class-action case centeredr on BofA’s collecting chec k overdraft and other fees by taking monefrom direct-deposit accounts set up to receive Social Securit y benefits. In 2004, a jury foun d BofA’s actions violated California banking laws that prohibitt banks from taking Social Security benefits to recoverdcustomer debts. But in 2006, the 1st District Courtf of Appeal in San Francisco ruleeBofA (NYSE:BAC) didn’t breach state banking The appeals court said the lawsuit misapplied a 1974 California Supreme Court decisiomn that prohibits banks from using public funds deposited into an account to pay the bank customer’s separate credit-card account.
Monday’s unanimous ruling upheld that Charlotte-based BofA told the news agency it was pleased with the which it saidrejected “a challenge to account-balancingf practices followed by everyu bank in California and acros the nation.”