The California Employment Development Department is dropping Bank of America as its partner for distributing unemployment benefits. In a press release on Friday, the EDD said it would replace BofA with financial services provider Money Network.
Like BofA, Money Network will issue microchipped prepaid debit cards to recipients. However, the EDD announced that it would also be adding a new direct deposit option.
In addition to unemployment benefits, the change is expected to affect those receiving disability and paid family leave benefits. The EDD began mailing letters to the 850,000 Californians with active benefit claims on Monday to inform them of key transition dates and actions.
The official transition to Money Network will take place on 15 February 2024, according to the EDD. For now, claimants can continue to use their current BofA prepaid debit cards as usual, the EDD said.
In addition to sending letters, the agency said it will send notices through various channels to inform claimants of important dates and changes.
