Outcome: $6 million, representing 60% of the interest consumers overpaid
Jette v. Bank of America, N.A., Case No. 2:20-cv-06791-SDW-LDW, United States District Court for the District of New Jersey
Litigated and settled a class action brought on behalf of Bank of America credit card account holders who chose the “amount due” option, believing they were paying their entire balance each month, and unintentionally incurring interest because of that payment option. Bank of America settled allegations that it wrongfully steered its customers into its highest-interest credit card payment option for almost $6 million. The settlement represents about 54% of the interest consumers overpaid. The suit arose from Bank of America’s credit card payment options between June 2014 and March 2021, offering customers the options of “amount due,” “minimum amount due,” “fixed amount,” and “account balance.” As customers’ credit card agreements stated, paying the entire balance due would not result in the cardholder accruing interest. Cardholders who chose the “amount due” option during this timeframe ended up only paying the minimum amount due, resulting in unanticipated interest charges.