Bank of America Hit with Lawsuit Over Auto-Pay Shutdown

Bank of America NA is facing a proposed class action lawsuit over claims that it improperly terminated auto-pay arrangements for loan customers who did not maintain an active Bank of America checking, savings, or credit account—allegedly leading to ruined credit scores and financial hardship.

Plaintiff Patrick Swift, who filed the suit in Pennsylvania’s Allegheny County Court of Common Pleas, alleges the bank engaged in a deceptive “bait-and-switch” scheme that caused him to unknowingly default on his car loan, triggering a sharp drop in his credit score and other financial consequences.

A Sudden Auto-Pay Cancellation Sparks Legal Battle

Swift, who financed a car loan through Bank of America in January 2022, initially set up automatic payments from an external Fidelity Investments account. However, when he later closed an unrelated checking account with the bank in June 2022, the institution allegedly cut off his auto-pay arrangement without clear notification.

While Bank of America sent emails on June 9 and June 11 citing vague “changes” to his account, Swift claims the messages never explicitly warned that his loan payments would be stopped. Adding to the confusion, the bank continued processing his July 2022 payment, leading him to believe his auto-pay setup remained intact.

Unbeknownst to Swift, his payments had ceased altogether. It wasn’t until March 2024—nearly two years later—that he received a notice alerting him that he had missed three months’ worth of payments.