Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
53 thoughts onBank of America, Capital One Rake In Billions While Denying Customers COVID Hardship Relief
BOA offered no covid assistance with customers affected by Covid.
Refuse to work with anyone who had Credit Card with them,instead they did the complete opposite and threatened to add late fees that would accumulate interest.
I wrote on here above awhile ago due to contacting them about lowering interest rates and it was prior to the interest rate increase recently. When you call and on hold they discuss “COVID” “hardship” etc., and see if you can get assistance and one being lowering interest rates and even when I asked to be transferred to the department that handles this (please) she told me they did and stopped and leadership doesn’t tell then why and they may be lowering interest rates at a later date and would contact me. I said you have a million customers? And you’re going to contact me? How do you manage the people you say this to and call them? She had no idea. They do in fact lower interest rates and are being dishonest and act like it doesn’t exist.
Would like to be added to the Bank of America lawsuit. They are giving me the run around and refusing to complete my loan modification that they promised during the pandemic. Jean
Please add me as well!! They are also refusing to take off unauthorized payments on my card. After saying that they are insured for this type of thing.
You have to contact the attorneys representing Capital one Plantiffs. It also happened to me. I suffered beyond what I can express. I went from having a home and 3 jobs to being homeless. I was struggling to choose what to pay to keep a roof over my head. Capital one kept marking my credit only offering one month. When I spiraled down into depression I lost my ability to function. I had to go into mental health treatment along with having covid 3 times. They kept telling me I only had a short time to pay or I’d be charged off with payment amounts I could not afford. I kept telling them the only offers they’re making are ones that help them. Ultimately adding burdens on those of us who have used every fiber of our being to make it. It is horrific.
Please add me to the Bank of America(BofA) Class Action lawsuit.
BofA said my request for 3 months of mortgage Covid relief, would be deffered to the end of my loan and my term would be extended.
After 3 mo, I called to close my request start laying again. BofA said it was in forbearance and I had to fill out paperwork and sign a form because I had to pay interest to the investors.
Since then, almost half my monthly payment goes towards interest.
How can that help the people? BofA is getting rich from this pandemic and the misfortunes of others.
My husband and i both need help.
He has a blood clot and meds were $900 for 3 months. I had a partial collapsed lung and still recovering. Cap 1 will not lower interest rated just stupid skip a pay that dont help.
Hi Sharon!! I have had two blood clots (pulmonary embolisms) in my lifetime and I am on eliquis 5 mgs twice daily. I was unable to pay 600 for my meds each month as well so I did some research and if you go to Insiderx.com and download the savings card, you will only pay pennies on the Donna’s monthly. Also if you go to his blood thinner website, they all have programs for cards that make it free for up to a year.
Yes I also qualified for. A $300 Capital One credit card and I was unable to pay the monthly payment each month. I called capital 1 myself and i was never offered a low payment plan but was informed I would have to pay a big amount each month.
I contacted capital one about 4 months ago to ask options lowering my interest rate and COVID assistance I was told neither exist other then if and when they lower interest rates they will let me know ( pls how will they let me know) they are being dishonest. Please add me to discuss / see if I can participate thanks
Please tell me that something can be done about this security feature that hold your money unnecessary and there is nothing you can do about it
Capital one is constantly hding my money for even 30 days at a time and cause me to be late on rent, car fees and a number of other things