Bank of America Facing Class Action Lawsuit Over Alleged Failure to Disclose Bill Pay Eligibility Requirement

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A Pennsylvania man claims in a proposed class action lawsuit that Bank of America failed to disclose that his enrollment in its Bill Pay service would be canceled if he did not maintain an account with the bank.

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According to the 15-page lawsuit, the defendant never informed the plaintiff that he was required to have an active Bank of America credit card, checking or savings account in order to remain enrolled in the automatic payment program. The case contends that Bank of America’s undisclosed eligibility requirement has caused consumers to unknowingly miss recurring payments and suffer late fees, damaged credit scores, loan delinquency, charge-offs, reduced access to credit opportunities and more.

The plaintiff says he signed up for Bill Pay after obtaining a car loan from Bank of America in January 2022. Per the suit, the man authorized Bank of America to automatically debit his Fidelity Investments account every month until the loan was paid off.

In June 2022, however, Bank of America sent the plaintiff two emails stating that his enrollment in Bill Pay had been terminated due to “changes in the status of [the plaintiff’s] account,” the lawsuit relays. A December 2024 letter from the defendant’s counsel revealed that the plaintiff’s enrollment was canceled because he closed his Bank of America checking account that month, the filing shares.

The plaintiff did not make alternative arrangements to pay his car loan because he did not notice the June 2022 emails, both of which were sent after 10 p.m., the case says. Bank of America also continued to send the consumer monthly statements misrepresenting that he was making progress paying off his loan and had a past due amount of $0.00, the complaint alleges.

“Because Plaintiff had no reason to know [Bank of America] could or would cancel his enrollment in Bill Pay, and because of the misrepresentations Defendant made in its account statements from August 2022 through March 2024, Plaintiff did not discover Defendant’s failure to debit his monthly car payments from his Fidelity account from July 2022 through March 2024,” the Bank of America lawsuit states.

The filing claims that Bank of America’s failure to debit the plaintiff’s monthly car payments caused his credit score to drop almost 100 points and his credit limit to be reduced from $20,000 to $1,500. The man also says he has paid unwarranted late fees to Bank of America, been harassed by debt collectors and had his credit card closed by another bank because of his deteriorated credit score.

The lawsuit looks to represent all Pennsylvania residents whose enrollment in Bill Pay was canceled by Bank of America because they did not maintain an active Bank of America consumer checking, savings or credit card account.

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