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Bank of America sign
(Photo Credit: Michael Vi/Shutterstock)

Bank of America, Capital One COVID Fees Class Action Lawsuit Overview:

  • Why: The plaintiffs in the two cases accuse the megabanks of breaking their promises to provide pandemic-related assistance to their customers and instead continuing to hit already burdened customers with late fees and interest charges. 
  • Who: Bank of America and Capital One are each facing a new class action lawsuit brought by credit card customers.
  • Where: The class action lawsuits were filed in California federal court.

Two class action lawsuits against Bank of America and Capital One have been filed over the banks’ continued assessment of late fees and interest charges despite their promises of hardship relief throughout the coronavirus pandemic. 

The two plaintiffs say they were denied meaningful forms of financial assistance when they became unable to make their credit card payments in the pandemic. Meanwhile, the banks raked in billions of dollars in revenue, according to court documents.

The banks are each accused of unjust enrichment, breaching the covenant of good faith and fair dealing and violating California consumer protection laws. 

The plaintiffs want both banks to “disclose the actual circumstances, if any, under which pandemic-related refunds will be provided to its customers” and to set up a system that will allow refunds for fees incurred due to coronavirus-related circumstances. They also seek restitution of all late fees, disgorgement of the bank’s “ill-gotten gains,” actual damages, prejudgment interest and attorneys’ fees.

Bank of America Breaks Promise to ‘Most Vulnerable Customers’

As a response to the pandemic, Bank of America had “promised consumers that it would refund punitive late fees and interest that hurt its most vulnerable customers,” the complaint says.

California resident Laverne Simmons had lost work due to the pandemic and wasn’t able to make her credit card payments. She was allowed a temporary one-time payment deferral as part of the bank’s “standard hardship program, not related to the COVID-19 pandemic.” The bank continued to charge her late fees. After that, customer representatives allegedly told Simmons that “there was no COVID-specific relief program.”

In 2020 alone, Bank of America made $33.3 billion in its consumer market, including $7 billion in service charges, according to court documents. 

Simmons seeks to represent a nationwide class and an alternative California class that includes all Bank of America consumer credit card customers who, after Mar. 12, 2020, were charged late fees by the bank, attempted to seek a refund and did not receive a refund for such fees.

Capital One Denied Assistance Point Blank, Class Action Says

As its pandemic response, Capital One promised that all customers could receive “relief from credit card late fees,” according to court documents.

California resident Tanya Fitzpatrick heard and trusted in these promises and continued to use her Capital One Platinum Mastercard. Just as Capital One encouraged customers, Fitzpatrick called the bank to ask for her late fees to be waived since she had lost work due to the pandemic. 

Fitzpatrick says that three different customer service representatives denied her request “without any further investigation.” 

“As a result, the burden of making her minimum payments continued to grow,” the complaint says. 

Capital One made $1.243 billion in service and other consumer charges, including late fees, in 2020. 

Fitzpatrick seeks to represent a nationwide class and an alternative California class that includes all Capital One credit card holders who, after Mar. 23, 2020, requested assistance from Capital One but were subsequently charged late fees or interest on unpaid credit card balances.

Did you have similar experiences with Bank of America, Capital One or another bank during the pandemic? Share your experience below!

Simmons is represented by Hassan A. Zavareei, Andrea R. Gold, Lauren Kuhlik, Glenn E. Chappell and Annick M. Persinger of Tycko & Zavareei LLP. 

The Bank of America COVID Fees Class Action Lawsuit is Simmons v. Bank of America, N.A, Case No. 2:22-cv-01126, in the U.S. District Court for the Central District of California. 

Fitzpatrick is represented by Hassan A. Zavareei, Andrea R. Gold, Lauren Kuhlik, Glenn E. Chappell and Annick M. Persinger of Tycko & Zavareei LLP.

The Capital One COVID Fees Class Action Lawsuit is Fitzpatrick v. Capital One Financial Corporation, Case No. 2:22-cv-00312-MCE-DB, in the U.S. District Court for the Eastern District of California. 


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53 thoughts onBank of America, Capital One Rake In Billions While Denying Customers COVID Hardship Relief

  1. louise rossberg says:

    i keep calling bank of america did not pay me for my edd in california and froze my card could never get a hold of the edd at all and i have money still owed to me and my bank of america card i need help its been a yr but im still trying to ask edd or bank of america for help they told me the money ison the card when i go to bank ts frozzzzzzzzzzzzen please help im elderly i need it for my bills .45,000

  2. Connie says:

    I am seeking to be included in a class action against capital one. I have 3 accounts with them and I’ve always paid on time until covid. In the past 4 months I’ve had a severe drop in income. Talking to the foreign reps gets you nowhere. They only offer terms that are impossible to meet. One of my accounts was hit with nearly $170 in fees even after I made the (small) payments I said I would, to show good faith. Capital one is literally getting rich off of their customers’ hardships. This is a callous practice and feels criminal. I would like to add that during this hardship, my debts with other companies are nearly paid in full, because they all worked with me and removed the interest. Capital one is the ONLY creditor that I am behind on payments with (I’ve even made my student loan payments during the whole pandemic). The only option that Capital one is offering to me is to INCREASE my hardship. THE ACTIONS OF CAPITAL ONE CLEARLY FEEL PREDATORY due to the fact that they are gaining monetarily off of the fact that I lost income.

    There should be oversight for Capital one to prevent them from gaining on the customers disadvantages.The scripts that Capital one provides to their foreign call center agents, with the ‘limited options’ they claim to have, are not options, but only a TACTIC to prevent capital one itself from dealing directly with its customers, or being held accountable for their abusive practices. This is what they hide behind and how they get away with it. Enough is enough! Please contact me so that I may be added to the class action lawsuit.

  3. TERRI TANNER says:

    I WAS NOT OFFERED ANY

  4. Cheryl Moehle says:

    I called so many time to Capital One as I have 3 Credit Cards with them and I asked countless times about getting help with a Hardship plan and noone would ever help me. I am 64 and on Social Security Disability and was and still am in desperate need of help. It is now getting to the point I just will not be paying them period. I cant

  5. Lynda Raymundo says:

    When Covid hit unexpectedly, & the Governor of New Jersey issued a ‘Shelter in Place” Order on 3-23-2020 then, closed ALL non-essential businesses, it devastated our low income household and we were unable to work. Governor Murphy encouraged New Jerseyans to “reach out to ur banks & credit card companies for deferment & assistance” (because he said all banks were on board to help). I tried many times in April-August 2020 to get in touch with a representative at Capital One to request help (deferment) & also ask that Capital One apply my $300 security deposit to my balance on this card. I called many, MANY times & I was either disconnected after holding for over an hour each time or I would receive a recording that they “are not accepting calls at this time, high call volume etc, please try again later”! I also attempted to request assistance via their online portal several times, however it was down each time I tried.
    I had been making payments & tripled the minimum due each month, assuming they would apply the extra to upcoming months, just in case I got sick or missed payments. They charged me late fee after late fee throughout the pandemic! First it was $25 in April 2020, even though my minimum payment was $25. But then, they raised it to $35, exceeding my $25 minimum payment due in violation of CFPB 12 C.F.R. § 1026.52(b)(2)(i)(A).
    I finally got a hold of a rep in September 2020 and she told me she would defer the payment for Oct & November & delete September 2020 late fee but there was nothing she could do about the past late fees charged. They deferred October but, for November I received a $35 late fee & they never reversed September’s late fee! She also said she could not apply MY security deposit to the balance which would have significantly decreased my balance and really helped us financially as we were seriously struggling at this point.
    From March 2020 to September 2020, I paid $310 in payments (my min due was $25 each month as my balance was approx. $700). Capital One charged me $180 in LATE FEES & continued to charge interest on my balance + the late fees that they assessed, causing financial insecurity & the inability to afford upcoming bills!! They would NOT apply my security deposit or waive ANY late fees charged, during one of the most devastating economic crises in the history of our country!! They really DID NOT want to help!
    Unfortunately, my anxiety symptoms became severely exacerbated, because I was severely financially impacted by the coronavirus pandemic. I contracted Covid in late November 2020 and was very, VERY sick. I was mentally worn out & since I also have an immune issue, I was ill for quite a while. In February 2021, when I was getting better, I called Capital One about my illness and their response was “your card was charged off”! I begged them to please allow me to make December, January & February’s payment, right now. The rep advised me that she could not & that she would file a dispute on my behalf & that I would receive something in the mail with the outcome. Needless to say, the dispute outcome was in Capital One’s favor! After opening all my mail from when I was ill, Capital One applied my security deposit to my account in January 2021. They destroyed my credit and any dreams we had to buy a house of our own….they are a deceptive & cruel company!!! I don’t understand how there are absolutely NO repercussions for a company that continuously “promised” assistance to their customers, but in reality did absolutely nothing!!

  6. Patricia Kemesies says:

    I had no choice but to use my capital one cards during covid, and I was unemployed. I would make the minimum payment and called them several times asking for help during covid and they told me they didn’t have any assistance program for me me. So disappointing

  7. Brenda says:

    YES! SOMEONE IS HOLDING Them accountable! I called and called to make sure that I could make some type of agreement as covid really screwed my financial life up… .and they ended up selling my account to a cut throat collection badger comp. Make these people pay! .. and hell yes I want in on this one too!

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