Federal class action claims BofA's 'PayPlan' to homeowners was deceptive

A federal class action claims Bank of America told customers its "PayPlan" of automatic weekly or fortnightly mortgage payments would save them money on interest, then "systematically and persistently" took the payments late and charged them even more interest.

In the suit, filed in Galveston, Long Ba Nguyen and Lan n Huynh say that BofA's “deceptive, unfair and conscionable” caused them to pay more interest over a longer period of time than they had agreed to.

Bank of America promoted PayPlan by promising customers that if they allowed the bank to withdraw the monthly mortgage payment in either twice-monthly or weekly installments, the customer would pay off their mortgage sooner, resulting in less interest expense over the life of the loan.

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