Khang & Khang LLP recently announced that a federal class action lawsuit has been filed against Bank of America, targeting the company’s Credit Protection Plus service.
Bank of America credit card holders are able to enroll in the Credit Protection Plus service for roughly one percent of their credit card balance. Customers enrolled in the program are allowed to defer their monthly minimum credit card payment under certain circumstances.
Plaintiffs in the lawsuit argue that Bank of America is using unfair and deceptive trade practices in connection with the sale and administration of the Credit Protection Plus program.
Bank of America is accused of enrolling card members into the program without their consent and automatically charging the recurring monthly fee.
In addition, Bank of America is allegedly enrolling card members into the program without first checking if they are qualified for its benefits. This is causing card members to pay fees for benefits they are not eligible to receive.
Bank of America customers have been publicly complaining about the program since 2008 on online forums, according to Forbes.
Bank of America recently settled an $8.5 billion case with investors, mostly made up of financial firms, in a lawsuit regarding mortgage-backed securities.