Bank of America, Capital One Rake In Billions While Denying Customers COVID Hardship Relief

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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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