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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.

A Domino Effect of Credit Destruction

Upon realizing the issue, Swift immediately covered the past-due payments and re-enrolled in auto-pay, which resumed withdrawals from his Fidelity account between April and September 2024. However, in October 2024, he was blindsided by a notification that his loan had been “charged off” as uncollectible—resulting in a devastating 100-point drop to his credit score.

Swift reached out to Bank of America for an explanation and was met with conflicting accounts. One bank representative allegedly told him that Fidelity had marked the auto-pay transactions as fraudulent and had requested a chargeback for an entire year’s worth of payments—an assertion Swift vehemently denies. Another explanation from Bank of America’s legal team suggested the bank had “reversed” 15 months of payments, which Swift claims is demonstrably false based on his Fidelity account records.

As a result of the alleged financial mishap, Swift’s credit limit was slashed from $20,000 to just $1,000, and another bank closed his credit card account entirely. The long-term damage to his credit profile, he argues, could impact his ability to secure loans, mortgages, and refinancing opportunities.