Coughlin Stoia Geller Rudman & Robbins LLP Announces Class Action Lawsuit Against Bank of America and MBNA Corporation.

Banks Sued over Deceptive "Live Checks," Says Coughlin Stoia

"Just like any other check" MBNA and Bank of America fraudulently claim

SAN DIEGO -- A California consumer has filed a proposed class action against Bank of America and MBNA Corporation for making knowingly false and misleading statements in their "live check" loan solicitations which intentionally concealed numerous fees and conditions. The lawsuit, available at www.csgrr.com/LiveChecks exposes the banks' deceptive efforts to induce consumers to open or draw upon a line of credit via a Live Check Loan Offer (i.e., access checks, convenience checks or balance transfer checks).

"Big banks are deceptively hiding fees and charges from unsuspecting consumers in a classic bait and switch," said Azra Z. Mehdi of Coughlin Stoia Geller Rudman & Robbins LLP. "The banks' false and misleading claim that these checks are 'just like any other' is designed to trick consumers."

The complaint alleges that the banks falsely claim that the check sent to consumers is "just like any other check" and is usable immediately, using language such as "Valid Immediately," "Act Now," "Do It Now," "Use Today," or "Don't Wait," among others, to suggest that customers need simply to write the check. The banks also misleadingly state that recipients can "borrow up to the full amount" available in the "live check," according to the complaint.

However, the banks fail to disclose in these solicitations that their proposed extension of credit is subject to a number of hidden conditions and fees, including a credit evaluation and possible resulting credit denial that does not occur until after the customer has already relied upon defendants' representation of available credit and has then endorsed, cashed, deposited, or otherwise attempted to negotiate the "live check." The complaint also alleges that the defendant banks' Live Check Loan Offer falsely suggests that checks may be used up to a certain amount, when in fact using the checks for the stated amount will result in defendants declining to honor the check and/or imposing undisclosed additional fees or charges.

The defendants' unlawful, unfair, and fraudulent business practices, have caused consumers to lose money via returned check charges, overdrawn account charges, increased interest rates or other fees and charges. The proposed class action covers the period of October 14, 2001 to the present. The case is currently pending in the Northern District of California before the Honorable Charles Breyer.

To learn more about the lawsuit or to determine if you were victimized by the banks' Live Check Loan Offer, please visit www.csgrr.com/LiveChecks.