Press Release: Major Banks Agree to Refund Fees Caused by Missed UI Payment

News Release — At-large DC Council member Elissa Silverman

CONTACT: Sam Rosen-Amy 

Agreement would help unemployment claimants hit by DOES “technical glitch”

WASHINGTON, D.C., February 26, 2021– Today, DC Councilmember Elissa Silverman (I-At Large) announced that several major banks have agreed to refund any overdraft fees caused by a DC government technology snafu that prevented 39,000 unemployment claimants from receiving their benefits payment last week. After discussions with Silverman and her staff, representatives from Bank of America, Capital One, and Wells Fargo said the financial institutions will refund overdraft fees caused by this issue. The three banks represent about half of the consumer banking market in the region.

“DC workers receiving unemployment shouldn’t lose money for our error, that’s adding insult to injury,” Silverman said. “I want to thank Bank of America, Capital One, and Wells Fargo for working with me and agreeing to refund any overdraft fees. It wasn’t the fault of our unemployment claimants that the money wasn’t in their accounts; it was the District’s error, and they shouldn’t have to pay a penalty for that.”

Last Thursday, Feb. 18, approximately 39,000 claimants in the District’s unemployment compensation system did not receive their expected weekly benefit by direct deposit, bankcard, or check due to what is described as a “technical glitch.” The DC Department of Employment Services, which administers the city’s unemployment compensation system, said that coding changes made by a vendor who maintains the legacy technology system caused the error. When the expected payments did not arrive, some workers faced overdraft fees, since their accounts did not have the unemployment compensation funds, and automatic payments for rent, utilities, and other bills had been scheduled. 

Wells Fargo and Capital One are asking impacted clients to contact their local branch to have the fee waived.  Capital One clients can also call the bank’s call center at 1-800-655-BANK (2265). Bank of America says it will be refunding non-sufficient funds and overdraft fees caused by this issue for impacted clients and that they do not need to call the bank or take any additional actions.  

“While today’s agreement covers the three largest consumer banks in the region, I hope other banks in the District will follow suit,” said Silverman. “My office will be reaching out to the other banks to ask them to also waive overdraft fees for our affected workers. I encourage workers who got an overdraft fee because of this issue to reach out to their bank as soon as possible.”

Anyone affected by the missed unemployment compensation payment can also call the Office of Councilmember Silverman for assistance, at 202-724-7772.

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