Bank Of America in Legal Battle With Child Actors - as part of the news series by GeoBeats.
One well known banking establishment has recently landed into some trouble for what many call an alleged illegal monthly charge.
Bank of America will become the defendant in a court case against a slew of child actors. The complaint alleges that the bank issued and withdrew monthly service charges from Coogan accounts, more commonly known as Trust Accounts.
The Coogan Law prohibits any withdrawals from the account until a child turns 18 or becomes legally emancipated from the parents. The law firm representing the plaintiffs claims that the bank’s fees are considered a withdrawal and are therefore illegal.
Approximately 15,000 child performers could have been affected by the charge and some have had their whole accounts wiped out by the age of 18. In some occurrences the actors owed Bank of America money.
Last year, Bank of America was at the center of another court battle against angry customers that resulted in a $410 million settlement. The bank was processing debit card payments by the highest amount rather than the order of occurrence. The action led to customers paying overdraft fees of $25-$35 each time.