Bank of America Class Action Lawsuit Alleges Auto-Pay "Bait-and-Switch"

Case Overview: Bank of America faces a lawsuit alleging it tricked customers with auto-pay, leading to late fees and credit score damage due to hidden account requirements.

Consumers Affected: Pennsylvania customers whose Bank of America auto-pay was canceled due to not maintaining an active Bank of America account.

Court: U.S. Court of Common Pleas of Allegheny County, Pennsylvania

Bank of America is facing a lawsuit accusing it of tricking customers into enrolling in its automatic bill payment system—only to later cancel their participation unless they maintained an active Bank of America credit card, checking, or savings account. 

The lawsuit, filed in Pennsylvania, claims the bank’s failure to disclose these conditions led to late fees, damaged credit scores, and even charge-offs, harming customers’ financial standing.

Bank of America Accused of Auto-Pay Deception

Patrick Swift filed the proposed class action lawsuit after he took out a car loan with Bank of America in January 2022. He set up automatic payments through the bank’s Bill Pay system, linking it to his Fidelity Investments account. For months, payments went through without issue, and Swift received statements confirming the withdrawals, the lawsuit explains. 

But in June 2022, Bank of America allegedly sent Swift late-night emails stating his enrollment had been canceled due to unspecified "changes in the status" of his account. Unaware of these messages, Swift assumed payments were still being processed—especially since his July 2022 car payment was successfully debited, he says in the lawsuit. Yet from July 2022 to March 2024, the bank reportedly stopped withdrawing his monthly payments while still issuing statements falsely confirming they had been processed.

Swift only discovered the issue when his credit score plummeted nearly 100 points in October 2024. He later learned the bank had charged off his loan due to missed payments—payments he believed had been made automatically, he says. Attempts to get a clear explanation from the bank resulted in conflicting answers, with one Bank of America representative even falsely claiming that Fidelity had reversed multiple payments at Swift’s request.

Hidden Account Requirements Lead to Financial Fallout

According to the lawsuit, Bank of America promotes its Bill Pay system as a convenient way for customers to automate their monthly payments. However, the bank allegedly does not disclose that participation is contingent on maintaining an active Bank of America deposit or credit account.

The lawsuit claims that by quietly canceling auto-pay enrollment for customers who fail to meet this requirement, the bank effectively sets them up for missed payments, late fees, and credit score damage. The financial consequences can be severe, impacting customers' ability to secure loans, refinance mortgages, or obtain credit cards in the future.

Bank of America Faces Growing Legal Challenges

This is just the latest in a string of legal challenges for the banking giant. In February, a Massachusetts man sued Bank of America, alleging it changed the terms of a promotional credit card offer after he had already met the spending requirements. The plaintiff, Jean-Baptiste Boyer-Gomez, accused the bank of a similar "bait-and-switch" tactic, claiming it downgraded promised travel rewards without notice.

Other lawsuits have targeted Bank of America’s handling of credit card interest charges, undisclosed fees on wire transfers, and its alleged failure to properly investigate fraud claims. The bank has faced multiple class action lawsuits in the past year alone, raising concerns about its consumer practices.

In his lawsuit, Swift wants to represent anyone in Pennsylvania whose enrollment in Bill Pay was cancelled by Bank of America because they didn’t maintain an active Bank of America consumer checking, savings, or credit card account. He is suing for violation of the Unfair Trade Practices and Consumer Protection Law and is seeking damages, restitution, fees, costs, and interest.

Case Details

• Lawsuit: Swift v. Bank of America, N.A.
• Case Number: 25-002403
• Court: U.S. Court of Common Pleas of Allegheny County, Pennsylvania

Plaintiffs' Attorney:

• Kevin W. Tucker, Kevin J. Abramowicz, Chandler Steiger, Stephanie Moore, Kayla Conahan, and Jessica Liu (East End Trial Group LLC)

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