Class Action Lawsuit Claims Bank of America Fails to Update Card Payments, Double-Charges Cardholders

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A proposed class action lawsuit claims that Bank of America does not update scheduled monthly credit card payments when a customer pays their balance before the end of the billing cycle, leading to duplicate charges.

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The 18-page lawsuit contends that Bank of America uses a “confusing and misleading” automatic payment system to withdraw a second payment even after a customer has paid their statement balance. The lawsuit accuses Bank of America of violating North Carolina’s debt collection and consumer protection laws, overpaying itself while leaving consumers “thousands of dollars in the lurch.”

“If a cardholder like Plaintiff pays all or part of their statement balance mid-cycle, Bank of America does not adjust its automatic payment to account for the earlier payment,” the Bank of America lawsuit summarizes. “Instead, it simply double-dips, re-billing the cardholder for the amount they already paid.”

According to the complaint, Bank of America cardholders can set up monthly automatic credit card payments for the minimum payment amount or their statement balance. The suit goes on to say that Bank of America defines the “statement balance” as the “new balance total, as shown on the credit card statement.”

However, “new balance total” is never defined in the cardholder agreement, the filing alleges, and “reasonable consumers understand this option to mean that it is intended to pay off the statement in full, unlike the minimum payment option,” the filing says. The lawsuit claims that Bank of America automatically withdraws a second payment for the “new balance total” even when a cardholder has already paid all or part of that amount before the billing cycle ends.

The lawsuit further states that the Bank of America cardholder agreement fails to inform cardholders that they will be billed twice when they pay the “new balance total” before the due date.

The class action lawsuit emphasizes that Bank of America benefits from the money it “snatches from customers’ accounts without notice or warning,” and makes it unreasonably difficult for consumers to obtain refunds.

Charging cardholders twice is “deceptive, unfair, and out of touch with industry norms,” the lawsuit says, adding that Citibank, Capital One, and Wells Fargo have systems in place that prevent overpayment if payments are made between the statement date and due date.

The lawsuit further explains that consumers have no way to anticipate that the defendant will bill them even after they’ve paid off their statement, and no way to prevent the overbilling, given that “Bank of America does not warn them of its practice until it has already taken their money.”

The plaintiff in this case paid the total balance on his Bank of America card on October 21, 2025, a full 20 days before the due date, according to the class action lawsuit. The case argues that, as such, the plaintiff’s credit card statement “should have reflected a zero balance on or before October 23, 2025, two business days after Plaintiff made his payment, and eighteen days before the payment due date.”

Instead, the filing says, the plaintiff logged into his Bank of America account on November 9, 2025, and noticed an automatic withdrawal pending. This automatic withdrawal was for the total balance the plaintiff already paid, the case claims.

The lawsuit adds that when the plaintiff called Bank of America to inquire about the pending withdrawal, a representative “explained that [Bank of America] recently implemented new software which was not recognizing manual payments” and that they had been “fielding calls from many Bank of America customers who were experiencing the same issue as the Plaintiff.”

Additionally, the Bank of America representative told the plaintiff, “there was nothing he could do to stop the double payment from leaving his account,” and that he would have had to request a refund after the money was withdrawn, the suit shares. The lawsuit pointedly adds that the plaintiff “had no guarantee that the money would be refunded.”

The Bank of America class action lawsuit seeks to represent any individual with a Bank of America credit card who enabled automatic payments through the Bank of America website, selected the “statement balance” payment option, made a payment mid-cycle, and was still billed the “new balance total” during the applicable statute of limitations.

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