Consumer complaint received 2026-01-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Charged too much interest
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AZ

Complaint narrative:
Creditor : Bank of America Issue Type : Credit card payment allocation / interest charges I am filing this complaint regarding Bank of Americas allocation of payments on my credit card account and the resulting interest charges, which appear inconsistent with the Credit Card Accountability and Responsibility Act of 2009 and 12 CFR 1026.53 ( a ). 

During the XX/XX/XXXX, XXXX XXXX, XXXX billing cycle, the required minimum payment on my account was {$300.00}. I made XXXX payments during the same billing cycle via electronic XXXX XXXX : {$400.00} on XX/XX/XXXX, and {$500.00} on XX/XX/XXXX, for total payments of {$900.00}. The minimum payment was satisfied by the first payment, and created an excess amount of {$94.00}. With the second payment there was an excess of payments above the minimum required totaling {$590.00} during the same billing cycle. 

My account carries multiple balances with different APRs. The cash advance balance carried the highest APR at XXXX XXXX The purchases balance carried an APR at XXXX XXXX Under 12 CFR 1026.53 ( a ), amounts paid in excess of the required minimum payment must be applied first to the balance with the highest annual percentage rate. This is also outlined in the Bank of America terms and agreements for my credit card. 

However, the XX/XX/XXXX statement reflects that the {$590.00} excess in payments were applied primarily to the purchases balance and not the cash advance balance. The cash advance balance ( which was only reduced by {$88.00} ) and the cash advance interest charged ( {$58.00} ) do not reflect a reduction consistent with proper allocation of the excess payments. Based on the interest charged, the average daily cash advance balance appears largely unchanged, indicating that the excess payments were not applied to the highest-APR balance in a compliant manner. 

Payments were made via electronic XXXX XXXX, which ( while this shouldn't matter ) does not allow consumers to provide payment allocation instructions. Nevertheless, the issuer remains obligated to allocate excess payments in accordance with federal law. I did not consent to the excess payments being applied to the lower-APR balance. 

On XX/XX/XXXX, I contacted Bank of America and requested the payment allocation or escalation department. I was transferred to Bank XXXX XXXX XXXX XXXX XXXX department. The representative, XXXX XXXX located in XXXX, NM reviewed my statement and agreed that excess payments should have been applied to the highest-APR balance and is contacting management. Despite this acknowledgment, I was kept on the call for over an hour, as she typed back and forth ( internally ) with whom she claimed to be " management ''. I asked what the problem was and why it was taking so long, more than once. She stated that " management '' did not understand, and to " please bear with me ''. However, this made no sense to me as it only took her minutes to review my statement and come to the same agreement. I asked for, and was not provided a case or escalation reference number despite requesting XXXX. I was told if the situation is escalated, then I would be provided with XXXX. I was given a XXXX number after requesting her full name and ID number. No correction or written explanation was provided. 

I am concerned that Bank of America is systematically treating split payments within the same billing cycle as separate transactions in a manner that circumvents the intent and requirements of 12 CFR 1026.53 ( a ), resulting in improper interest charges and extended payments.

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