Consumer complaint received 2025-08-17 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NE

Complaint narrative:
I am filing this complaint against Bank of America for policies that appear to be intentionally designed to deter customers from paying down the principal balance on their loans, thereby maximizing the interest collected by the bank. 

I have an active vehicle loan ( XXXX  loan ) with Bank of America. I am making consistent and diligent efforts to pay down the principal balance ahead of schedule by making additional payments each month. However, Bank of America has made this process deliberately and unnecessarily challenging. 

My specific grievances are as follows : XXXX. Lack of Automated Online Principal Payments : In XXXX, Bank of America 's online and mobile banking platforms still do not offer a clear or direct way to automatically or manually apply an excess payment directly to the loan 's principal. When I make a payment, the system 's default and only option is to apply the funds to the next scheduled payment, which includes both principal and interest. This means that my extra payments do not immediately reduce the principal and therefore do not reduce the daily interest that accrues. 

XXXX. Mandatory Phone Call and Excessive Wait Times : The only way I can ensure an extra payment is applied to the principal is by calling a representative. On multiple occasions, I have been forced to wait on hold for an hour or more to speak with a person just to complete a simple transaction that should be available online. This is a significant inconvenience that serves as a powerful deterrent to customers who wish to be financially responsible and pay down their loans early. 

XXXX. Lack of Online Confirmation : Even after enduring the long wait times and confirming with a representative that the payment was applied to the principal, there is no online record or clear display that shows the principal-only payment has been made. See attachment. This lack of transparency forces me to rely on my own meticulous record-keeping and creates distrust in the bank 's process. 

XXXX. Monetizing Principal Payments Through Required Accounts : A Bank of America representative confirmed to me that the only way to set up automated, principal-only payments is by using the bill pay feature from a Bank of America XXXX XXXX savings account. However, these accounts charge a monthly fee unless a specific, high balance is maintained. This policy effectively forces a consumer to incur " junk fees '' simply to access a standard and widely available loan management function. 

Bank of America XXXX  actions are not just an inconvenience ; they constitute a clear barrier to paying off debt and an unethical method of generating revenue from consumers who are trying to manage their finances responsibly. They are profiting from policies that deliberately make it difficult for customers to pay down their loans early. 

I am requesting that the CFPB investigate these practices and XXXX Bank of America to : Implement a transparent online system for making principal-only payments. 

Cease policies that require a customer to pay a fee to access basic loan management functions.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation