Consumer complaint received 2015-03-30
Product: Credit card — 
Issue: Late fee — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (PA)

My issue with Bank of America is in the process of being resolved, however the practice described must be investigated and action taken for BOA to discontinue the practice described for my situation. If other individuals have been charged fees for like situations they should be refunded and BOA penalized for it 's actions. 
We have an AAA credit card issued by BOA. The card has a rewards program where earned points may be redeemed for travel, merchandise, cash, or statement credit. My complaint is related to an instance where statement credit for the points earned was requested and approved. The XXXX 2015 statement amount was for {$490.00} and the due date was XXXX/XXXX/15. Points value available for redemption was {$480.00}, thus a balance of {$3.00} was due. The points conversion was requested and made via a telephone call on XXXX/XXXX/15 and the BOA agent verified the remaining amount of {$3.00} due. An electronic payment was made on XXXX/XXXX/15 in the amount of {$5.00}, thus overpaying the amount due by {$1.00}. The XXXX statement the following month indicates the payments and credits of {$490.00}, however a late payment fee of {$20.00} was assessed on XXXX/XXXX/15, the closing date for the XXXX statement. No interest was charged. 
In a telephone call to BOA, the agent stated the fee was assessed because a minimum payment was not made. Without hesitation she stated it is defined in their disclosure statement that a minimum payment is required. Speaking to a supervisor, she also stated several times that the requirement to make a minimum payment is defined in the disclosure statement. She said the agent making the transaction would have read the disclosure at the time. The agent may have read it at the time but it was not clear the a minimum payment of {$25.00} would also be required. The supervisor then offered to remove the {$20.00} fee but said she could not do so until I made an immediate {$20.00} payment because the account is in errs and locked until I made the payment. I opted not to do so at that time. She said she placed a note on the account and once payment is received the account will be credited for {$20.00}. On XXXX/XXXX/15 an electronic payment payable on XXXX/XXXX/15 was made for the full amount of the XXXX statement which included the {$20.00} fee. The statement has a due date of XXXX/XXXX/15. I assume the {$20.00} credit will be made within a few days of receipt by BOA. When this {$20.00} is credited it will stand as a {$20.00} credit against the XXXX statement and in effect be a forced interest free loan to BOA for that period. 
The disclosure I believe the BOA personnel referred to is entitled AAA Member Rewards Program Rules. Under the heading of Cash Rewards - Redemption for a Statement Credit the statement reads " Points redeemed for statement credit will post to your account within 3 days of the date of redemption. Statement credits will generally be applied to your existing balance with the highest priced Annual Percentage Rate ( APR ). Receipt of a statement credit does not affect your responsibility to pay your Total Minimum Payment shown on each Statement you receive from us. '' It statement does not state that funds must be tendered for amounts in excess of the amount owed. Our practice has been and is to pay statement balances in full each month. The BOA requirement to pay any amount in excess of the amount due is totally illogical, and unethical and should be illegal if it not so at present. The fact that the agent and supervisor were so quick with the retort that " it 's in the disclosure statement '' leads XXXX to believe this is not an isolated occurrence.