Bank of America Hit with Class Action: Automatic Payments Fail to Adjust Midcycle, Sparking Duplicate Charges Outrage
A furious consumer has launched a class action lawsuit against Bank of America this week, claiming the bank’s rigid automatic payment system refuses to tweak schedules when users pay off balances early—triggering unwanted double dips that sting wallets nationwide. In a bold move filed in North Carolina federal court, the suit accuses the financial titan of deceptive practices that leave cardholders footing extra bills they never saw coming.
The Bank of America class action lawsuit over automatic payments exploded into headlines as Nicholas Sdoucos, a Charlotte-area resident, stepped up as lead plaintiff. According to the complaint, Sdoucos set up autopay on his Bank of America credit card to handle the full statement balance each month, a common safeguard against late fees and interest creep. But when he proactively cleared his balance midcycle—say, on the 15th instead of the 25th due date—the bank’s system allegedly ignored the change, firing off the scheduled payment anyway. The result? Duplicate charges that drained his linked checking account, forcing him to scramble for overdraft coverage or face penalties.
This Bank of America autopay glitch isn’t isolated, the suit argues. It allegedly ensnares thousands of users who rely on digital banking for seamless bill management, turning a convenience into a costly trap. The filing spotlights how these midcycle payment failures lead to unnecessary debits, often hitting vulnerable customers like young professionals or fixed-income retirees who budget tightly around payday cycles. In Sdoucos’ case, the overpayments totaled hundreds of dollars over months, money he had to reclaim through customer service marathons that yielded refunds only after hours on hold.
Background on this brewing scandal traces back to broader gripes with big-bank billing tech. Bank of America, the second-largest U.S. lender with over 68 million consumer clients, has weathered a barrage of fee-related lawsuits in recent years—from overdraft scandals to wire transfer gripes. Regulators like the Consumer Financial Protection Bureau have cracked down on “junk fees,” fining banks billions since 2022. Yet, this class action zeroes in on autopay mechanics, claiming the bank’s software lags behind industry norms. For context, rivals like Capital One and Chase dynamically recalibrate payments upon early payoffs, preventing duplicates and earning nods for user-friendly design.
The complaint, docketed as Sdoucos v. Bank of America, N.A. in the U.S. District Court for the Western District of North Carolina, levels charges under the North Carolina Unfair and Deceptive Trade Practices Act. It seeks class certification for all U.S. Bank of America cardholders hit by these unadjusted payments since 2020, potentially encompassing millions. Damages could include tripled refunds for affected users, plus punitive awards to deter future foul play. Bank of America has not commented publicly, but sources say the bank plans a vigorous defense, insisting its terms disclose payment finality.
Legal eagles are already dissecting the case’s legs. “This is low-hanging fruit for plaintiffs—autopay is sold as foolproof, but glitches like this erode trust,” opines consumer attorney Laura Smith of the National Consumer Law Center. She points to a 2024 CFPB report flagging similar issues across lenders, where 15% of autopay users reported billing errors. On X, the backlash is fierce: Hashtags like #BoAFail and #AutopayScam trended midweek, with one viral thread from a Texas mom recounting a $450 double-charge that nearly derailed her rent. “Bank of America automatic payment lawsuit? Count me in—it’s predatory!” read a post racking up 5,000 likes. Echoes from past suits, like a 2023 overdraft settlement paying out $8 million, fuel optimism for a quick resolution.
For everyday Americans, the stakes in this Bank of America class action lawsuit over automatic payments couldn’t be higher. With household debt topping $17 trillion in 2025, per Federal Reserve data, even small duplicate charges snowball into credit dings that jack up borrowing costs for mortgages or car loans. Lifestyle hits are real: Imagine a family in Ohio dipping into grocery funds to cover an erroneous debit, or a freelancer in California losing a client over a bounced invoice tied to the mess. Economically, it spotlights fintech frailties amid rising digital banking adoption—85% of U.S. adults now use apps for payments, says Pew Research—pushing calls for federal mandates on real-time adjustments.
Politically, the suit lands amid White House pushes for fee caps under the Biden-Harris administration’s “junk fee” crusade, with CFPB Director Rohit Chopra vowing more probes into banking transparency. Tech-wise, it underscores AI’s double edge: While banks tout smart algorithms for fraud detection, basic autopay tweaks remain stubbornly manual, leaving consumers in the lurch. Sports fans might chuckle at the irony—Bank of America Stadium in Charlotte hosts NFL showdowns, but off-field, the bank’s playbook is drawing penalties from irate accountholders.
Diving into the weeds, the 22-page filing details how Bank of America’s portal lures users with “set it and forget it” autopay pitches, yet buries caveats in fine print about non-refundable scheduled pulls. Sdoucos’ ordeal began in March 2025, when an early payoff for a home improvement splurge triggered a phantom charge two weeks later, sparking a chain of support tickets. The suit contrasts this with Chase’s “adaptive pay” feature, which auto-scales based on real-time balances, and Capital One’s alerts for midcycle shifts—tools that could slash errors by 40%, per a J.D. Power study.
Public sentiment skews toward schadenfreude mixed with solidarity. Forums like Reddit’s r/personalfinance buzz with war stories: One user shared screenshots of a $200 overdraw from a “helpful” autopay gone rogue, tagging it “Bank of America duped me again.” Advocacy groups like the Consumer Federation of America are monitoring closely, urging members to document discrepancies for potential opt-ins. Shares of Bank of America dipped 0.8% on filing news, a blip hinting at litigation fatigue after $1 billion in settlements since 2020.
As the case ramps up, experts predict discovery could unearth internal emails exposing why the system stays static—perhaps cost-cutting on updates or oversight lapses in a post-pandemic digitization rush. For now, affected users are advised to pause autopay, monitor statements weekly, and flag issues via the bank’s app chat for faster resolutions.
This Bank of America class action lawsuit over automatic payments lays bare the fine line between innovation and irritation in modern finance. With the festive spending season looming, where credit card swipes surge 20%, the timing couldn’t be worse for glitches that amplify holiday debt.
In summary, Nicholas Sdoucos’ bold filing signals a reckoning for Bank of America’s autopay practices, promising refunds and reforms that could safeguard millions from midcycle mishaps. As courts weigh in through 2026, expect ripple effects: Smarter systems, stricter oversight, and a win for wary consumers navigating the banking maze—one adjusted payment at a time.
By Mark Smith
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