Bank of America Faces Class Action Lawsuit Over Auto-Pay Glitch That Double-Charged Customers

Case Overview: Bank of America accused of double-charging customers through faulty auto-pay.

Consumers Affected: Credit card users billed twice after early payments.

Court: U.S. District Court for the Northern District of Illinois

Bank of America’s credit-card auto-pay system is at the center of a new lawsuit claiming the bank has been withdrawing more money than customers actually owed, even after their balances were paid in full. 

According to the filing, customers saw additional funds pulled from their bank accounts without warning. The complaint describes a setup that ignores mid-cycle manual payments and then charges the full statement amount anyway, as if no earlier payment existed. 

The lawsuit alleges this design allows the bank to retain customer funds unnecessarily, creating financial strain for cardholders who believed they were using auto-pay to avoid exactly that kind of stress.

Plaintiff Says Bank Recharged Thousands Despite Zero Balance

Illinois resident Nicholas Sdoucos, who filed the lawsuit, enrolled in Bank of America’s “statement balance” auto-pay option years ago, expecting his bill would be paid in full and on time each month. 

He linked it to his personal checking account and relied on it to avoid interest and fees, a common strategy as credit-card debt and interest charges have surged nationwide.

This fall, after making more than $3,000 in purchases, Sdoucos manually paid the remaining $2,044.88 on his card weeks before the due date. His balance dropped to zero, and he expected the next auto-pay withdrawal to adjust accordingly. Instead, Bank of America prepared to pull the same $2,044.88 again.

When he reached out, he learned that recently implemented software wasn’t recognizing manual payments, and that other customers were reporting the same issue. 

He was told the withdrawal could not be stopped and would have to go through first, leaving him temporarily out thousands of dollars that he had earmarked for regular expenses. The amount later appeared as a credit on his card, but the cash had already left his checking account.

Complaint Points to Software Flaw That Over-Collects from Customers

Bank of America offers two auto-pay choices: the minimum payment due or the full statement balance. The lawsuit argues that reasonable consumers believe the “statement balance” option should pay exactly that, and only once. 

But the bank allegedly makes no adjustment when customers pay mid-cycle, instead re-charging the full amount and effectively “double-dipping.”

Auto-pay use has grown steadily as credit-card interest rates and fees hit historic highs, making predictable payments increasingly important for consumers trying to avoid debt. 

The complaint argues that Bank of America encourages auto-pay enrollment while maintaining a system that can over-collect from customers who pay early.

Bank of America Faces Series of Ongoing Consumer Lawsuits

This case lands on top of several unrelated disputes already facing the bank. A new lawsuit filed in North Carolina alleges that hundreds of hourly employees weren’t paid for time spent booting up their computers before clocking in, as much as 30 minutes a day. 

The bank is also defending claims in California over allegedly profiting from public benefit funds, as well as separate lawsuits in Pennsylvania and Massachusetts involving payment systems, card practices, and fees. 

Another proposed class action filed in 2024 accused the bank of charging interest to a fully paid-off credit-card account for two consecutive months.

In his lawsuit, Sdoucos aims to represent Bank of America cardholders nationwide who enabled auto-pay for their statement balance, made a mid-cycle payment, and were still charged the full balance again. 

The case brings state business-law claims and an unjust-enrichment claim, and seeks class action certification, damages, attorneys’ fees, and any additional remedies the court finds appropriate. 

Case Details

• Lawsuit: Sdoucos v Bank of America, N.A.
• Case Number: 1:25-cv-13845
• Court: U.S. District Court for the Northern District of Illinois 

Plaintiffs' Attorneys

• Hassan A. Zavareei, Katherine M. Aizpuru, and F. Peter Silva (TYCKO & ZAVAREEI LLP)
• Shaun Spector (The Law Offices of Shaun Spector, PLLC)

Has your credit card auto-pay ever withdrawn more than you expected? Share your experience below.