Bank of America class action claims company canceled automatic bill payments without notification

Bank of America class action lawsuit overview:

• Who: Plaintiff Jeffrey Chen filed a class action lawsuit against Bank of America.
• Why: Bank of America allegedly fails to notify credit card holders that their enrollment in its automatic bill payment program will be canceled due to non-use of their credit card.
• Where: The Bank of America class action lawsuit is in California federal court.

Bank of America allegedly canceled credit card holders’ automatic bill payments without notifying them, according to a class action lawsuit in California federal court.

Plaintiff Jeffrey Chen says he is a Bank of America credit card holder and enrolled in the bank’s 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.

Chen “belatedly found out that his enrolled autopay accounts were no longer being paid, causing them to be overdue and reported to the credit bureaus,” which affected his credit rating, the Bank of America class action lawsuit alleges.

Bank of America class action says bank gave no notice that auto payments enrollment would be canceled due to non-use of card

Upon enrollment in the Bank of America automatic bill payments program, cardholders are required to sign credit card agreements and other documents, Chen says.

“However, none of these documents mention that the bill pay enrollment will automatically be cancelled if the credit card is not used for a period of time,” according to the Bank of America class action lawsuit.

Bank of America also allegedly fails to inform credit card account holders about its automatic bill pay program cancellation policy in the “How Online Bill Pay Works” and “Bill Pay and eBills FAQ” sections on its website.

Because of Bank of America’s lack of disclosure, Chen and other putative class members were “erroneously assured that their bills were being paid continuously” only to find out that their registration in the automatic bill payment program was canceled, leaving their bills unpaid, ultimately impacting their credit ratings.

Chen says he 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.

The Bank of America class action lawsuit asserts claims for violations of California’s Consumer Legal Remedies Act, False Advertising Law, and Unfair Competition Law.

Three recent Bank of America class action lawsuits allege the bank opened new customer accounts without consent, refused to pay promised bonuses for new credit card accounts, and charged undisclosed fees on incoming wire transfers.

Were your Bank of America automatic bill payments canceled without notification? Tell us about your experience in the comments!

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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