Class Action Says Bank of America Unlawfully Withholds Cash Rewards After Closing Customers’ Accounts

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A proposed class action lawsuit claims Bank of America unlawfully withheld the cash rewards rightfully earned by a California resident whose account it closed in September 2022.

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The 12-page lawsuit alleges that the bank routinely acts “unfairly” by “knowingly” denying customers access to their accrued cash rewards after closing their accounts. According to the suit, while voluntary account closures still allow customers to redeem their cash rewards, involuntary closures like the one the plaintiff purportedly experienced result in lost rewards, per Bank of America’s policy.

As the case tells it, after learning the bank was planning to permanently close her checking and savings account on September 17 of last year, the plaintiff withdrew all her money in fear of losing access to it. Because the closure was involuntary, the woman allegedly lost all of the cash rewards she had been accumulating since obtaining a Bank of America credit card, the complaint says.

According to the filing, customers earn cash rewards when they use their Bank of America credit cards. The points do not expire and accumulate as customers spend money, ready to be redeemed in the form of cash credited back to the account, the suit explains.

Reasonable customers would not understand that they would lose access to their cash rewards if Bank of America closed their accounts, particularly as the defendant discloses the information in a “deceptive and rapid manner that is intended to disguise the terms of the cash rewards,” the case contends.

The lawsuit looks to represent anyone residing in California whose account was involuntarily closed by Bank of America since February 27, 2019, resulting in the loss of their earned cash rewards on their Bank of America credit card.

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