Bank Of America Must Face Claims Over Alleged Credit Card Autopay Overcharges
By CU Today Staff —
CHICAGO— Bank of America must face most claims in a proposed class action alleging its credit card autopay system withdraws money customers no longer owe after they manually pay their statement balances, a federal judge has ruled.
According to Law360, U.S. District Judge Robert Gettleman denied the bank's motion to dismiss the majority of the lawsuit, finding plaintiff Nicholas Sdoucos adequately alleged both a concrete financial injury and a deceptive business practice.
According to the complaint, Sdoucos manually paid his $2,044.88 credit card statement balance on Oct. 21, 2025—weeks before the Nov. 10 autopay date—but Bank of America allegedly withdrew the full statement balance anyway, leaving the funds as a credit on his account. The bank argued Sdoucos created the problem himself by making a manual payment while enrolled in autopay, but Gettleman concluded the alleged unauthorized withdrawal was sufficient to establish standing.
The judge also found the complaint plausibly alleged that Bank of America's disclosures could mislead consumers. As detailed in the court complaint and reported by ClassAction.org, customers selecting the "statement balance" autopay option could reasonably expect the bank to reduce or cancel the scheduled withdrawal after receiving a manual payment, rather than debit the original statement amount regardless of what remained owed.
The proposed class action seeks to represent Bank of America credit card customers who selected statement-balance autopay, made a manual payment before the due date and were still charged the full statement balance. The lawsuit asserts claims under North Carolina consumer protection and debt collection laws, as well as claims for breach of the implied covenant of good faith and fair dealing and unjust enrichment, according to the complaint.
Originally reported by CU Today.