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Bank of America class action lawsuit overview:
- Who: Plaintiff Diana L. Higginbotham filed a class action lawsuit against Bank of America NA.
- Why: Bank of America allegedly collects illegal processing fees for mortgage payments.
- Where: The Bank of America class action lawsuit was filed in West Virginia federal court.
- What are my options: MoneyGram lets you send money and pay bills.
Bank of America charges illegal mortgage processing fees when borrowers make mortgage payments online or by telephone, according to a class action lawsuit filed May 8 in West Virginia federal court.
Plaintiff Diana L. Higginbotham says she entered into a loan agreement for $20,000 in 1998, which was subsequently transferred to Bank of America.
Bank of America allegedly charges Higginbotham $6 when she makes her mortgage payment via telephone and reportedly charged her $47.01 in fees in 2020 that have not been explained on her monthly statements.
Higginbotham says Bank of America was not authorized to assess these “pay-to-pay” fees.
Bank of America class action says West Virginia law prohibits ‘pay-to-pay’ fees
The Bank of America class action lawsuit says loan servicers are meant to be compensated through interest paid from borrowers each month and not through purported “service” fees that do not reflect the cost of providing the service.
The lawsuit notes mortgage loan servicers typically use a vendor to process mortgage payments, but the cost per transaction is usually 30 cents or less and not $6.
West Virginia law prohibits Bank of America from collecting pay-to-pay fees that pass the bank’s servicing costs to borrowers and “thereby create an additional profit center for itself,” according to the Bank of America class action.
Higginbotham filed the Bank of America class action lawsuit on behalf of herself and a proposed class of all persons with a residential mortgage loan securing a property in West Virginia with a loan serviced by Bank of America and who paid a fee for making a loan payment by telephone, interactive voice recognition or other electronic means.
The lawsuit asserts claims for violations of the West Virginia Consumer Credit and Protection Act, breach of contract and unjust enrichment.
In related news, a consumer recently filed a class action lawsuit against Bank of America alleging the bank reported loan defaults to credit reporting agencies while the loans were in CARES Act forbearance.
Have you been charged fees when paying your Bank of America mortgage online or by phone? Tell us about your experience in the comments!
Higginbotham is represented by Jonathan R. Marshall, Jack Bunn, Denali Hedrick, and Patricia M. Kipnis of Bailey & Glasser LLP.
The Bank of America mortgage class action lawsuit is Diana L. Higginbotham, et al. v. Bank of America NA, Case No. 2:23-cv-00375, in the U.S. District Court for the Southern District of West Virginia, Charleston Division.
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8 thoughts onBank of America class action claims company collects illegal processing fees for mortgage payments
please add me
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add me asap plz
I need some information about previous lawsuits I might have joined few years back. Especially Apple, Wells Fargo and few others..
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I had a mortgage loan through them they were difficult to work with sold house to get out of loan with them. (2006-2010)
In 2020 when i had been out of work from covid and waiting for my job to reopen Bank of america froze my account after saying money was taken from it even though I hadn’t had any put in for months at the time. They froze my account and didn’t let me make a new one and it ruined my otherwise okay credit at the time which sent me spiraling the past few years. I relocated to California to be with family because I was on the verge of homelessness in IL and ever since moving I’ve had little to no luck getting callbacks from Jobs and finding work. Same goes for loans and any type of social service as well. I was never provided further details on what/why they Closed my account