Bank of America Did Not Warn Credit Cardholders About Auto Bill Pay Cancellation Terms, Class Action Says

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A proposed class action claims Bank of America has “knowingly” failed to warn credit cardholders that enrollment in the Bill Pay autopay program will be automatically cancelled if their credit cards are inactive for a certain amount of time.

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The 16-page lawsuit says that nowhere in the credit card agreement or other forms required to enroll a Bank of America credit card in the autopay program is it disclosed that registration in the program will be cancelled if a customer does not use their card for a specific period of time.

Likewise, the autopay program’s promotions and the Bill Pay and eBills FAQ sections of Bank of America’s website similarly fail to mention that customers are required to use their credit cards regularly to keep their Bill Pay registrations active, the suit relays.

According to the case, Bill Pay’s automatic cancellation may go unnoticed by consumers and result in overdue payments, for which Bank of America charges numerous late fees. For instance, a cardholder with an account balance of $100 or less faces a $19 late fee, while balances of $5,000 or more may be charged a late fee up to $49, the complaint shares.

What’s more, overdue payments put a cardholder’s credit standing at risk when the late bills are reported to credit agencies, the filing adds.

“Because of [Bank of America’s] false statements and lack of disclosure, [the plaintiff] and the class members were erroneously assured that their bills were being paid continuously even if they were not using the credit card, only to find out later on that their registration to the Bill Pay program has been automatically cancelled, their bills were now overdue, and their credit ratings affected because these overdue accounts were reported to the credit bureaus,” the lawsuit states.

The plaintiff, a California resident, says he discovered in June 2023 that his enrollment in the Bill Pay autopay program had been cancelled due to credit card inactivity. The man claims that he did not know his accounts were no longer being paid, and the resulting overdue payments impacted his credit rating.

The lawsuit looks to represent any Bank of America client whose credit card is enrolled in the Bill Pay autopay program.

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