Bank of America PayPlan Class Action Lawsuit

Follow us on Twitter and Facebook for the latest Class Action Settlement News!

Bank of America PayPlan Class Action Lawsuit

By Kimberly Mirando

 

Bank of America has been hit with a federal class action lawsuit for allegedly processing its PayPlan mortgage payments in a “deceptive, unfair and unconscionable” way by making “persistent” miscalculations of interest charges and purposefully taking payments late in order to charge customers even more interest. 

The Bank of America class action lawsuit takes aim at BofA’s “PayPlan,” an automatic weekly or fortnight mortgage payment plan it promised would save customers money on interest by paying off their mortgage sooner. 

 

According to the BofA PayPlan class action lawsuit, however, Bank of America “manipulated the dates of the actual withdrawal from the customer’s checking account and systematically and persistently withdrew the customer’s payment one to five days (or even more) later than agreed. As a result of this conduct, more interest accrued on the unpaid balance of the customer’s mortgage loan… Because of this practice, customers have paid thousands of dollars more in interest than they would have over the course of the loan than they would have paid had Bank of America withdrawn the payments as agreed. Thus, despite its promotion of the PayPlan to customers as a tool to save money, Bank of America actually used this tool to take more money from its customers.”

The BofA PayPlan class action lawsuit is brought on behalf of the following proposed classes:

All Bank of America mortgage loan customers in the United States who were enrolled in a “PayPlan” automatic withdrawal payment plan and such withdrawals were done on days other than set forth in the customer agreements.

All Bank of America mortgage loan customers in the United States whose daily interest charges between payments were miscalculated by the Bank.

All Bank of America mortgage loan customers in the United States who had their loan unilaterally modified by the Bank such that their original loan maturity date extended beyond the maturity date originally agreed upon.

All Bank of America customers residing in Texas during the applicable statute of limitations preceding the filing of this actions to the date of class certification, for the purpose of asserting claims under the Texas state consumer protection statutes (the “State Subclasses”).