A proposed class action has been filed against the two banks for allegedly knowingly making false and misleading statements in their "live check" loan solicitations. The lawsuit is pending in the Northern District of California and was filed on behalf of all those who received live check solicitations from October 14, 2001 to February 5, 2008. The lawsuit claims Bank of America and MBNA Corp. intentionally concealed numerous fees and conditions to induce consumers to open or draw upon a line of credit via a Live Check Loan Offer.
The complaint alleges the banks falsely claimed the checks sent to consumers are 'just like any other check' and are usable immediately. However, the banks failed to disclose that the proposed extension of credit is subject to a number of hidden conditions and fees, including a credit evaluation and possible credit denial. Bank of America and MBNA Corp.'s unlawful, unfair, and fraudulent business practices have allegedly caused consumers to lose money via returned check charges, overdrawn account charges, increased interest rates or other fees and charges.