Bank of America, US Bank, Key Bank Bond Obligations Class Action

When a business acquires another entity and its assets, it’s common for it to take on its obligations as well. However, the complaint for this class action alleges that Bank of America, NA, US Bank, NA, and KeyCorp, of Key Bank, are not honoring the time deposit investments issued to customers by their predecessors, Rainier Bank and Seattle-First Bank.

The class for this action is all individuals who acquired a bank bond, bill, certificate, time deposit, CD, and multiple maturity non-negotiable time certificate of deposit from Rainier or Seattle-First Banks with the following conditions: (1) the bond automatically renews unless it is redeemed or a notice of nonrenewal is given by the issuer under the terms of the bond, (2) the owner or legal beneficiary has not redeemed the bond, and (3) the owner or legal beneficiary received no notification that the bond was not being renewed, was abandoned, and/or had escheated to the State of Washington’s Unclaimed Property Division.

The banks named as defendants in this case are successors-in-interest to Rainier National Bank and Seattle-First National Bank. The complaint alleges that customers “deposited money in exchange for bank bonds, bills, certificates, time deposits, CDs, and multiple maturity non-negotiable time certificate of deposits” issued by Rainier and Seattle-First, which the complaint calls “the bonds.”

The terms of the bonds require that the customers who purchased them bring their original bonds and surrender them to get their principal and unpaid interest. However, according to the complaint, when customers surrendered the bonds of the predecessor banks, the successor banks refused to honor them.

The complaint alleges, “Bank of America has previously been sued multiple times for [its] failure to redeem Rainier National Bank Bonds.” The complaint cites a particular case where the judge “held that Bank of America breached [its] contract and ordered Bank of America to pay the holder of the Bond. Nevertheless, Bank of America and the other bank defendants continue to tell Plaintiffs and other members of the class that their Bonds are worthless and that they have no value.”

The complaint traces the various acquisitions of banks involved in this case.

According to the complaint, however, when customers attempt to present the bonds to the successor banks, they are not given their money. In the case of two of the plaintiffs, Bank of America “knowingly misrepresented … that the money was sent to unclaimed property.” In the case of the other two, Key Bank and US Bank respectively claimed they were not responsible for the payment of the bonds.

The complaint alleges breach of contract and violations of the Washington Consumer Protection Act on the part of the successor banks.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Bank of America, US Bank, Key Bank Bond Obligations Complaint

February 7, 2020

When a business acquires another entity and its assets, it’s common for it to take on its obligations as well. However, the complaint for this class action alleges that Bank of America, NA, US Bank, NA, and KeyCorp, of Key Bank, are not honoring the time deposit investments issued to customers by their predecessors, Rainier Bank and Seattle-First Bank.

successor_banks_refusal_to_honor_bonds_compl.pdf

Case Event History

Bank of America, US Bank, Key Bank Bond Obligations Complaint

February 7, 2020

When a business acquires another entity and its assets, it’s common for it to take on its obligations as well. However, the complaint for this class action alleges that Bank of America, NA, US Bank, NA, and KeyCorp, of Key Bank, are not honoring the time deposit investments issued to customers by their predecessors, Rainier Bank and Seattle-First Bank.

successor_banks_refusal_to_honor_bonds_compl.pdf
Tags: Investments, Refusal to Honor or Pay Bonds CDs or Other Investments, Your Bank