BofA class action alleges bank double-bills credit card customers

Bank of America class action lawsuit overview:

• Who: Bank of America (BofA) is facing a new class action lawsuit.
• Why: The class action alleges the bank’s automatic payment system double-bills customers.
• Where: The Bank of America class action lawsuit was filed in Illinois federal court.

A new class action lawsuit filed against Bank of America alleges the bank’s automatic payment system double-bills customers who make a payment in the middle of a billing cycle.

Plaintiff Nicholas Sdoucos filed the class action complaint against Bank of America on Nov. 11 in Illinois federal court, alleging violations of the North Carolina Unfair and Deceptive Trade Practices Act and the North Carolina Debt Collection Act, breach of the implied covenant of good faith and fair dealing and unjust enrichment.

Sdoucos alleges that BofA’s automatic payment system double-charged him more than $2,000 because he made the responsible financial decision to pay off his card balance in the middle of a billing cycle.

Bank of America’s automatic payment system debited his account a second time, leaving him thousands of dollars in the lurch, he alleges.

Sdoucos claims the bank’s automatic payment system is confusing and misleading, and that Bank of America profits from retaining the money it takes from customers’ accounts without notice or warning.

He claims the bank refuses to pay interest on the amounts wrongfully taken and requires consumers to navigate unreasonable hurdles to obtain refunds.

Bank of America double-bills customers who make mid-cycle payments, lawsuit alleges

Sdoucos says he set up automatic payments to pay off his credit card balance each month to avoid interest charges and fees.

He claims he paid off his statement balance mid-cycle but BofA did not adjust its automatic payment to account for the earlier payment.

As a result, the bank double-dipped and re-billed him for the amount he already paid, he alleges.

Sdoucos says he contacted BofA to address the error but was told there was nothing he could do to stop the double payment.

He says he was informed that he would have to wait for the money to be withdrawn and then request a refund, with no guarantee that the money would be refunded.

Sdoucos is looking to represent anyone with a Bank of America credit card who enabled automatic payments through the Bank of America website, selected the “statement balance” payment option, made a mid-cycle payment and was still billed the full “New Balance Total.”

He is suing for breach of the implied covenant of good faith and fair dealing, violations of the North Carolina Unfair and Deceptive Trade Practices Act and the North Carolina Debt Collection Act and unjust enrichment. He seeks certification of the class action, damages, fees, costs and a jury trial.

Earlier this year, BofA faced a class action lawsuit claiming it failed to respond to borrowers’ requests for information and requests to correct errors related to their residential mortgage loans.

What do you think of the allegations made in this Bank of America class action lawsuit? Let us know in the comments.

The plaintiff is represented by Hassan A. Zavareei, Katherine M. Aizpuru and F. Peter Silva of Tycko & Zavareei LLP and Shaun Spector of The Law Offices of Shaun Spector PLLC.

The Bank of America class action lawsuit is Sdoucos v. Bank of America N.A., Case No. 1:25-cv-13845, in the U.S. District Court for the Northern District of Illinois.

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