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Bank Of America Glitch Delays NJ Unemployment Benefits

State Quick To Deny Problem With Its Systems

Keith Griffin

June 9, 2020

Bank of America branches

New Jersey officials say a systems breakdown by Bank of America delayed unemployment compensation for two days to state residents. Exact numbers were not available on how many were affected.

NorthJersey.com reported weekend system maintenance created issues with processing certain direct-deposit payments for Bank of America, the New Jersey Office of Information Technology said. The site’s readers emailed saying they had not received their regular or federal supplemental unemployment benefits and got no information from the state as to why.

"We are working with the state of New Jersey to get these important payments processed as quickly as possible," said Mark Pipitone, senior vice president of corporate communications for Bank of America.

"It was not the state; it was not our systems," Gov. Phil Murphy said. "I believe one of the big banks that was involved in the direct deposits had a systems failure this weekend."

Bank of America is the bank that New Jersey uses to process direct deposit payments, and then send them to the bank accounts of claimants.

This is not the first issue that applicants or recipients of unemployment insurance have faced in the last three months. Systems have crashed, phone lines are jammed and thousands of workers are still waiting to have their claims processed as the agency scrambles to deal with an unprecedented flood of applications.

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