Bank of America autopay cancellation class action overview:ย
- Who: A Bank of America customer has sued the company.
- Why: The plaintiff says the bank canceled his auto payment to his credit card due to non-use of the card, without his knowledge.ย
- Where: The Bank of America autopay cancellation class action was filed in a California federal court.
A California federal judge has allowed a lawsuit to proceed that alleges Bank of America canceled credit card holdersโ automatic bill payments without notifying them.
On July 9, Judge Dana M. Sabraw issued an order partially granting Bank of Americaโs motion for judgment on the allegations, but allowing most of the claims to proceed.ย
Plaintiff Jeffrey Chen says he is a Bank of America credit card holder and enrolled in the bankโs automatic bill payment program. In June 2023, Chen says he learned that his Bank of America automatic bill payments had been canceled and he had been unenrolled from the program because he had not used the credit card for a year.
He says this undisclosed change in his autopay status affected his credit score. Chenโs lawsuit asserted claims for violations of Californiaโs Consumer Legal Remedies Act (CLRA), False Advertising Law, and Unfair Competition Law.
Judge dismisses CLRA claims but allows the rest to proceed
In her recent order, Sabraw said she agreed with the bankโs argument that the CLRA claims should be dismissed, because the law does not explicitly apply to credit cards or autopay programs.ย
She added that there is case law that supports the narrow interpretation of the law that Chen argued against. Sabraw allowed the False Advertising Law and Unfair Competition Law claims to proceed, denying the bankโs claims that Chen did not have standing and did not satisfy the pleading claims.
โPlaintiff has alleged the โwhoโ (defendant) and the โwhatโ (failed to inform its autopay customers that their enrollment in the autopay program would be automatically canceled if their credit card was not used for a certain period of time),โ the order says.
Chen says he and others would not have enrolled in the Bank of America automatic bill payments program had he known his enrollment would automatically be canceled due to non-use of his credit card.
Were you affected by this alleged Bank of America autopay issue? Let us know in the comments!ย
Chen is represented by James M. Treglio and Mark Potter of Potter Handy LLP.
The Bank of America automatic bill payments class action lawsuit is Jeffrey Chen v. Bank of America Corp., et al., Case No. 3:23-cv-01762, in the U.S. District Court for the Southern District of California.
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50 thoughts onBank of America autopay class action moves forward
please add me I as soon as possible thank you
These credit card companies are scammers! They want every hard earned cent! If they fail our tax dollars will rescue them! We need some for the people
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I didnโt have a credit card but a auto loan. When they found out I was making 2 automotive payments a month the cut me off of auto pay.
BOA caused me to make a late payment on one of my BOA credit cards because they changed the bill payment configurations without notifying me. This resulted in late charge and drop in credit score.
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All of my credit card accounts have had the auto pay feature since they were opened. Due to a failed fraud attempt on one of my Bank of America credit card accounts, BOA cancelled the existing account and opened a new credit card account. Unbeknownst to me, the auto pay feature was not included. When the next pay date was missed, BOA charged me a late fee and interest. BOA refused to forgive these charges and I refused to pay the ever increasing late charges. BOA subsequently contacted the credit bureaus with the non payment info who then reduced my credit score over 100 points. Several months later BOA retracted the charges but my reduced credit score negatively remains for the foreseeable future.
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You should also investigate macys credit card. My automated payment didnโt go through for two months and I received no email no mail communication of this. My credit score dropped and I got worse house loan conditions due to this. They owe me big money.
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