Bank of America Credit Card Auto-Payment Options Class Action

This class action brings suit against Bank of America, NA for allegedly misleading customers about the payment options for automatic payments for its credit cards. The complaint alleges that Bank of America offers “Amount Due” as the default for monthly payments, which may give customers the mistaken impression that the full amount owed will be paid.

The class for this action is all persons (1) with a Bank of America credit card (2) who enabled automatic payments through the Bank of America website and (3) selected the Amount Due payment option, during the applicable statutes of limitations, until the date a class is certified in this action.

Credit card customers can usually set up automatic payments on their cards by entering certain information on the credit card portal about their bank accounts and what they want to pay each month.

For most credit cards, customers can choose to pay (1) the minimum amount due that month, (2) the balance on their most recent billing statement, or (3) a fixed amount each month.

The most profitable choice for the bank—and the least favorable for the customer—is the minimum amount due. The rest of the balance will then be rolled over to the following month and the credit card company will charge interest on that amount. The less customers pay, they more they owe, and the more interest the credit card company earns.

Bank of America offers customers a fourth payment option, in addition to Minimum Amount Due, Account Balance, and Fixed Amount. It calls this Amount Due. This choice is the first listed and the default among the four options.

The complaint alleges, “Presented with these four options, reasonable consumers would expect ‘Amount Due’ to mean the statement balance, (i.e., the ‘amount due’ from the last month’s purchases), while ‘Account Balance’ would be an option similar to American Express’s fourth option (i.e., the statement balance plus any other purchases made since the statement date).”

According to the complaint, “Reasonable consumers would expect that after selecting ‘Amount Due,’ Bank of America would withdraw the total ‘amount due’ from their deposit accounts every month, and, as a result, no balance would carry over to the next month and no interest would accrue.”

However, in fact, the complaint says, Amount Due is the same as Minimum Amount Due. The complaint claims, “‘Amount Due’ is a duplicative feature that serves no purpose except to confuse customers and inflate Bank of America’s profits. Bank of America, which collects interest charges as profit, makes less money when customers pay their entire account balance every month and do not incur interest.”

Bank of America’s credit card account agreements say that North Carolina law will apply to its accounts. The complaint alleges that Bank of America violates North Carolina consumer protection laws.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Bank of America Credit Card Auto-Payment Options Complaint

June 3, 2020

This class action brings suit against Bank of America, NA for allegedly misleading customers about the payment options for automatic payments for its credit cards. The complaint alleges that Bank of America offers “Amount Due” as the default for monthly payments, which may give customers the mistaken impression that the full amount owed will be paid.

Bank of America Credit Card Auto-Payment Options Complaint

Case Event History

Bank of America Credit Card Auto-Payment Options Complaint

June 3, 2020

This class action brings suit against Bank of America, NA for allegedly misleading customers about the payment options for automatic payments for its credit cards. The complaint alleges that Bank of America offers “Amount Due” as the default for monthly payments, which may give customers the mistaken impression that the full amount owed will be paid.

Bank of America Credit Card Auto-Payment Options Complaint
Tags: Automatic Payments, Your Bank