Bank of America Class Action Lawsuit: Wrongful Credit Card Interest Charges?

Everyone with a credit card knows paying off your full balance is the most secure way to avoid interest charges and fees. So when you have an automatic payment setup to ensure that full balance is paid monthly, the situation should be stress free. 

However, one Bank of America credit card user says it ain’t so.

Bank of America Customer Finds Unexpected Interest Charges Despite Full Payment

Brooklyn resident Skye Ruozzi has filed a proposed class action lawsuit against the banking giant accusing it of charging her interest for two consecutive months, despite her balance being fully paid. In the lawsuit, she accuses BOA of debiting her Chase bank account for the full amount due on her credit card in September and October of 2023, but then charging her $14.06 and $18.07 for the two months. 

Because Ruozzi had selected an automatic payment plan that meant her balance was fully paid each month, she didn’t pay close attention to her monthly statements given she knew she shouldn't be charged interest or fees. However, she says when she did check she was shocked by the situation and immediately called the bank, which informed her it was an “error” in their system.

Lawsuit Claims Bank of America's Payment Options Mislead Consumers

Ruozzi filed the proposed class action accusing the bank of “unfair and deceptive acts” because she believes many other BOA users will have been affected by their “errors” as well. She accused the bank of not abiding by the terms under its payment options and said “reasonable consumers would expect that by choosing “Account Balance,” they are choosing to pay off the amount due as of the last statement—thereby avoiding interest charges on purchases under the Card Agreement.”

“Contrary to the expectations of reasonable consumers, paying the full amount owed on the credit card each month will still result in interest being charged and added on to the following statement’s balance,” the lawsuit states.

Bank of America's History of Legal Battles Over Consumer Practices

It isn’t the first time Bank of America has been accused of charging consumers unfair fees or acting in a deceptive manner.

In May, Bank of America paid $8 million to settle a class action lawsuit accusing the bank of deceiving customers into paying ACH fees to transfer money out of their accounts, when the transfers could have been done for free. 

Also in May, the bank was accused of failing to legitimately investigate fraud claims by a consumer. In her proposed class action lawsuit, Kimberley Dennie accused BOA of sending out form letter denials that claim customers are responsible for banking fraud rather than the bank, even when the forms have been completed and submitted as required and should be investigated.

Earlier this year, a separate consumer filed a proposed class action lawsuit against BOA accusing it of violating the Truth in Lending Act, which requires banks to send monthly statements, arguing that BOA failed to provide monthly statements to customers who fell behind on home equity credit payments.

In the Bank of America credit card interest class action lawsuit, Ruozzi seeks to represent Bank of America customers nationwide who were allegedly overcharged interest. She accuses the bank of violating various state and federal laws and is seeking damages, fees, and interest reimbursement.

Case Details

• Lawsuit: Ruozzi v Bank of America, N.A.
• Case Number: 1:24-cv-03783
• Court: U.S. District Court for the Eastern District of New York

Plaintiffs' Attorneys

• Michael J.S. Pontone (Michael J.S. Pontone, Esq., P.C.)