Bank of America Facing Class Action Over Allegedly Deceptive Automatic Credit Card Payment Options

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A New York consumer alleges Bank of America’s “confusing” automatic credit card payment options caused her to incur interest charges, even though she signed up to have her balance paid automatically in full each month.

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The 17-page proposed class action lawsuit says that when the plaintiff enrolled in AutoPay for her Bank of America credit card in 2023, she specifically selected the “Account Balance” payment option to ensure that no balance would carry over each month and accrue interest. Indeed, the defendant’s website represents that this option would automatically “pay the total amount due” on the woman’s monthly credit card bill to help her “avoid any fees or finance charges resulting from not paying the total balance,” the complaint says.

While reviewing her statements in October 2023, the plaintiff was shocked to discover that Bank of America had charged her interest several months in a row, the filing alleges. For example, the lawsuit says, records show that the woman paid the full balance on her statement for the period of August 21 through September 20, 2023, but Bank of America still charged her $14.06 in interest.

“Reasonable consumers would expect that after selecting ‘Account Balance,’ 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,” the complaint reads.

The plaintiff says she immediately contacted Bank of America about the issue and was told the interest charges were due to an “error” in its system. The case alleges that the defendant’s purported error has likely affected thousands of people.

The lawsuit looks to represent anyone with a Bank of America credit card who, during the applicable statute of limitations period, enabled automatic payments through BankOfAmerica.com and selected the “Account Balance” payment option.

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