On November 24, 2008 a class action lawsuit was filed against Bank of America, for deliberately engaging in a course of action that led to credit card customers to be intentionally penalized even though payments were made by the due date.
The suit cites, as an example, the case of Bruce Trombley who received a credit card statement with a closing date of October 2, 2007 that indicated that a minimum payment of $248.00 was due by Saturday, October 27, 2007. Mr. Trombley went into a Bank of America branch on Saturday, October 27, 2007 at 11:44 am and made a payment of $250. Bank of America subsequently notified Mr. Trombley on his November 2007 credit card statement that he was to be charged a late fee of $39.00 and his promotional interest rate would no longer apply even though Mr. Trombley made his payment by the due date.
The second example in the suit involves the case of Ryan Sukaskas who was charged a $15 pay-by-phone fee for making his payment on the due date. He had attempted to make the payment via the Bank of America website but the site indicated that since it was the date due that a payment could not be made via the site.
It is alleged that consumers have been made to pay fees, charges and higher interest rates due to breaches of MBNA, FIA Card Services, and Bank of America credit card agreement and violation of the Truth in Lending Act. The plaintiffs in this case state that Bank of America has profited from the charging of fees, other fees, charges and/or additional finance charges for payments on accounts received on the due date.
The primary issue here is if Bank of America failed to apply payments made on the day made without the imposition of additional fees and charges. Additionally it is stated that Bank of America is intentionally taken actions that are designed to increase the amount of finance charges, late fees, and other charges that customers must pay.
The other issue is that Bank of America appears to be out of compliance with the Truth in Lending act and Regulation Z of the Consumer Protection Act of 1968 that says that “A creditor shall credit a payment to the consumer’s account as of the date of receipt, except when a delay in crediting does not result in a finance or other charge…”
If you feel that you have been unfairly charged a late fee, a fee to make your payment on the due date, or have received an increase in the interest rate, even though you made your payment on the due date, you might want to contact the attorney in this case:
Peter N. Wasylyk
1307 Chalkstone Avenue
Providence, Rhode Island 02908
Telephone: (401) 831-7730
Facsimile: (401) 861-6064
Photo: James Callan