CS-2025-60 - BANK OF AMERICA, N.A. v. ALLYSSA LOUISE SMITH

What's This Case About?

Let’s get one thing straight: Bank of America is suing a woman in Tulsa for $2,625.35—less than three grand—over a credit card bill. That’s it. No missing persons, no secret affairs, no backyard wrestling ring used as an unlicensed daycare. Just a credit card. A Visa Signature, to be exact. And yet, somehow, we’re here, treating this like it’s the O.J. Simpson trial of Oklahoma debt collection, because apparently in 2025, a two-and-a-half-thousand-dollar unpaid balance is worthy of a full legal siege, a 15-page statement of interest charges, and a law firm in Colorado filing papers in Tulsa District Court like they’re defending national security.

Meet Allyssa Louise Smith. She lives at 12128 E. 30th Place in Tulsa, Oklahoma—a modest address, not exactly a mansion with a gold-plated toilet. She had a Bank of America credit card. Not a corporate line of credit, not a Merrill Lynch private banking account. Just a regular, run-of-the-mill credit card that probably came with a welcome offer of 0% APR for 12 months and a $25 gift card if she spent $500 in the first 90 days. She used it. She made purchases. She accrued interest. And then, at some point—like most of us when life throws a flat tire, a medical bill, or a surprise pet iguana that eats $200 worth of leafy greens a month—she stopped paying.

The last payment she made? October 6, 2023. That’s four months of silence before the final straw: a statement dated May 9, 2024, showing a balance of $2,625.35. No new purchases. No fees. Just interest—$60.21 in one billing cycle alone—piling up like dirty dishes in a college dorm. The card was maxed out ($2,000 credit line, $2,625 balance—because apparently math is optional in credit card land), and by May 31, 2024, Bank of America officially “charged off” the account. Which sounds dramatic, like they held a funeral for the debt with tiny black credit cards and a eulogy read by a robot voice. But really, a charge-off just means the bank has given up on collecting the money… internally. It doesn’t mean the debt disappears. Oh no. It just means they’re handing it off to the wolves—like Nelson & Kennard, a debt collection law firm based in Colorado, which is now legally demanding Allyssa pay up or face judgment.

So what exactly happened? Well, nothing particularly scandalous. Allyssa opened a credit account. She presumably signed an agreement—probably while clicking “I agree” on a website without reading 47 pages of fine print about Daily Periodic Rates and Average Daily Balances. She used the card. She stopped paying. The interest kept accruing. The bank stopped sending cute “We miss you!” emails and started sending stern “You’re 12 years away from paying this off if you only pay the minimum” warnings. Then silence. Then a lawsuit.

Bank of America’s legal claim? Breach of contract. That’s the fancy way of saying, “You agreed to pay us, and you didn’t.” It’s the same claim used in billion-dollar corporate disputes, and now it’s being wielded against a woman over a credit card balance that, let’s be honest, probably includes a few takeout orders, a car repair, and maybe a last-ditch attempt to cover rent after a paycheck came up short. The contract is real. The debt is real. But so is the APR—28.24% variable on purchases, and a cheerful 29.99% on cash advances. That’s not a credit card. That’s a financial horror movie.

And now, Bank of America wants $2,625.35. Plus court costs. Plus sheriff’s fees. Plus special process server fees—because apparently, someone had to be paid to hand Allyssa a piece of paper saying, “Hey, the bank is suing you.” Is $2,625 a lot? In the grand scheme of lawsuits, no. You could buy a decent used car for that. Or a really nice vacation. Or, if you’re Allyssa, maybe six months of rent in a one-bedroom apartment in Tulsa. But for a debt collection case? It’s not chump change, but it’s not exactly Citibank vs. The Rock either. The real kicker? If she had just paid the $85 minimum payment every month, she’d still be on the hook for over $5,800 by the time it’s paid off. That’s the magic of compound interest—your debt throwing a party and inviting all its friends.

Now, let’s talk about the exhibit. The Exhibit 1 in this case isn’t surveillance footage or a damning text message. It’s a credit card statement. A full, 15-page breakdown of interest calculations, billing rights, reward points (zero, by the way), and a section titled “Important Messages” that basically says, “We haven’t received your payment. Please send it. If you already did, thanks.” It’s like the bank is passive-aggressively guilt-tripping her while simultaneously suing her. And the interest charge calculation? It’s a full-on math thesis. Average Daily Balance Method. Pre-Cycle balances. Daily Periodic Rates. This isn’t a bill—it’s a final exam in financial calculus.

So why are we even talking about this? Because it’s absurd. Not because Allyssa shouldn’t pay her debts—she probably should. But because a national bank, one of the largest financial institutions in the world, is spending legal resources, paying attorneys, and clogging the Tulsa County District Court over $2,625. They’re not after a rogue CEO who embezzled millions. They’re after a woman whose card statement says she earned zero rewards points and probably hasn’t flown Allegiant Air in years. They’re using the full power of the legal system to collect a debt that, let’s be real, might have been better handled with a phone call, a payment plan, or just writing it off as the cost of doing business in a country where 40% of adults can’t cover a $400 emergency.

And yet, here we are. Bank of America, with its P.O. box in Wilmington, Delaware, and its law firm in Colorado, is suing Allyssa Louise Smith in Oklahoma, all because she didn’t pay a credit card bill that ballooned thanks to interest rates that would make a loan shark blush. The most ridiculous part? The statement actually includes a warning that says, “If you make only the minimum payment, you will pay more in interest and it will take you longer to pay off your balance.” And then, when she didn’t pay it off, they sued her. It’s like a gym charging you for a year of membership, then suing you for not going enough.

We’re not rooting for deadbeats. But we’re also not rooting for billion-dollar banks that design credit products to trap people in cycles of debt, then act shocked when someone falls behind. If Allyssa spent the money on yachts and caviar, fine. But we’re betting it was groceries, gas, and life happening. And if that’s the case, then this lawsuit isn’t justice. It’s paperwork with a side of shame.

So here’s our take: If you’re going to charge 28% interest, don’t act surprised when people can’t pay. And if you’re going to sue someone for less than the cost of a used refrigerator, maybe ask yourself if the legal fees are worth it. Because in the end, this isn’t a story about debt. It’s a story about power, paperwork, and the quiet, soul-crushing grind of trying to survive in a system that charges you just for falling behind.

And hey, Allyssa—if you’re out there, and you’re reading this? We’re sorry. And also, maybe stop using that card.

Case Overview

$2,625 Demand Complaint

Jurisdiction

District Court of Tulsa County, Oklahoma

Filing Attorney

Ashton Dewayne Sears

Nelson & Kennard

Relief Sought

$2,625 Monetary

Plaintiffs

BANK OF AMERICA, N.A. business
Rep: Nelson & Kennard, Ashton Dewayne Sears, OBA # 35737

Defendants

ALLYSSA LOUISE SMITH individual

Claims

#	Cause of Action	Description
1	breach of contract	failure to make required monthly payments

Petition Text

3,197 words

IN THE DISTRICT COURT OF TULSA COUNTY STATE OF OKLAHOMA BANK OF AMERICA, N.A., Plaintiff, vs. ALLYSSA LOUISE SMITH Defendant(s). COMES NOW the Plaintiff, by and through counsel, Nelson & Kennard, and herewith alleges the following and seeks redress as hereafter delineated. 1. Plaintiff is a national banking association, which transacts business within the State of Oklahoma. 2. Venue is proper in this County, as the Defendant(s) either reside(s) in this County at the commencement of this action, or the contract which is the subject matter of this action was made, executed, and delivered in this County. 3. The last four (4) digits of the Defendant’s account number, used by the original creditor as of the date of default are XXXXXXXXXXXXXX1232. 4. Plaintiff’s claim arises when the Defendant(s) opened a credit account and failed to make the required monthly payments as agreed. The credit account charged off for non-payment on 5/31/24, the balance due at time of default is as follows $2,625.35. A true and accurate copy of the last periodic statement provided to the Defendant(s) prior to charge-off is attached hereto as Exhibit 1. 5. The Defendant(s) breached the Contract by failing to make the required periodic payments. 6. As a direct and proximate result of the Defendant(s) default, the total amount of debt claimed is $2,625.35. 7. The date of the last payment made by the Defendant(s) is October 6, 2023. 8. Plaintiff seeks court costs, and for such further relief as the Court may deem proper in the premises. WHEREFORE, Plaintiff, BANK OF AMERICA, N.A. prays for judgment against the Defendant(s), ALLYSSA LOUISE SMITH in the amount of $2,625.35, plus all costs herein expended, including but not limited to, court costs, sheriff's fees, and special process server fees; and for such other and further relief as the Court may deem proper in the premises. Dated this December 2, 2024. Nelson & Kennard By: Ashton Dewayne Sears, OBA # 35737 12596 W. Bayaud Ave., Ste. 120 Lakewood, CO 80228 Phone: 866-920-2295 Attorney for the Plaintiff EXHIBIT 1 BANK OF AMERICA P.O. BOX 15284 WILMINGTON, DE 19850 allyiant ALLYSSA LOUISE SMITH 12128 E 30TH PL TULSA OK 74129-8432 Customer Service Information: www.bankofamerica.com 1.855.693.7283 Mail billing inquiries to: Bank of America P.O. Box 672050 Dallas TX 75267-2050 Mail payment to: Bank of America P.O. Box 851001 Dallas TX 75285-1001 Visa Signature® Account# [blacked out] 1232 April 10 - May 9, 2024 Account Summary/Payment Information Previous Balance $2,565.14 Payments and Other Credits $0.00 Purchases and Adjustments $0.00 Fees Charged $0.00 Interest Charged $60.21 New Balance Total $2,625.35 Total Credit Line $2,000.00 Total Credit Available $0.00 Cash Credit Line $200.00 Portion of Credit Available for Cash $0.00 Statement Closing Date 05/09/2024 Days in Billing Cycle 30 New Balance Total $2,625.35 Current Payment Due $85.00 Past Due Amount $738.00 Total Minimum Payment Due $823.00 Payment Due Date 06/06/2024 Late Payment Warning: If we do not receive your Total Minimum Payment by the date listed above, you may have to pay a late fee of up to $39.00 and your APRs may be increased up to the Penalty APR of 29.99%. Total Minimum Payment Warning: If you make only the Total Minimum Payment each period, you will pay more in interest and it will take you longer to pay off your balance. For example: <table> <tr> <th>If you make no additional charges using this card and each month you pay</th> <th>You will payoff the balance shown on this statement in about</th> <th>And you will end up paying an estimated total of</th> </tr> <tr> <td>Only the Total Minimum Payment</td> <td>12 years</td> <td>$5,815.00</td> </tr> </table> If you would like information about credit counseling services, call 866.300.5238. BANK OF AMERICA P.O. BOX 851001 DALLAS TX 75285-1001 ALLYSSA LOUISE SMITH 12128 E 30TH PL TULSA OK 74129-8432 Account Number: [blacked out] 1232 Payment Due Date 06/06/2024 New Balance Total $2,625.35 Total Minimum Payment Due $823.00 Enter payment amount $ For change of address/phone number, see reverse side. Make your payment online at www.bankofamerica.com or Mail this coupon along with your check payable to: Bank of America IMPORTANT INFORMATION ABOUT THIS ACCOUNT PAYING INTEREST - We will not charge interest on Purchases on the next statement if you pay the New Balance Total in full by the Payment Due Date, and you paid in full by the previous Payment Due Date. We will begin charging interest on Balance Transfers and Cash Advances on the transaction date. TOTAL INTEREST CHARGE COMPUTATION - Interest Charges accrue and are compounded on a daily basis. To determine the Interest Charges, we multiply each Balance Subject to Interest Rate by its applicable Daily Periodic Rate and that result is multiplied by the number of days in the billing cycle. To determine the total Interest Charge for the billing cycle, we add the Periodic Rate Interest Charges together. A Daily Periodic Rate is calculated by dividing an Annual Percentage Rate by 365. HOW WE ALLOCATE YOUR PAYMENTS - Payments are allocated to posted balances. If your account has balances with different APRs, we will allocate the amount of your payment equal to the Total Minimum Payment Due to the lowest APR balances first (including transactions made after this statement). Payment amounts in excess of your Total Minimum Payment Due will be applied to balances with higher APRs before balances with lower APRs. IMPORTANT INFORMATION ABOUT PAYMENTS BY PHONE - When using the optional Pay-by-Phone service, you authorize us to initiate an electronic payment from your account at the financial institution you designate. You must authorize the amount and timing of each payment. For your protection, we will ask for security information. To cancel, call us before the scheduled payment date. Same-day payments cannot be edited or canceled. YOUR CREDIT LINES - The Total Credit Line is the amount of credit available for the account; however, only a portion of that is available for Bank Cash Advances. The Cash Credit Line is that amount you have available for Bank Cash Advances. Generally, Bank Cash Advances consist of ATM Cash Advances, Over-the-Counter (OTC) Cash Advances, Same-Day Online Cash Advances, Overdraft Protection Cash Advances, Cash Equivalents, and applicable transaction fees. MISCELLANEOUS - Promotional Rate End Date: This date is based on a future statement closing date. If you change your payment due date, this date could change. The New Balance Total which appears on this statement is not a payoff amount and may be subject to additional interest charges when you pay in full after your statement closing date. Virtual cards are the digital form of your eligible physical credit cards stored within a digital wallet. © 2024 Bank of America Corporation CALCULATION OF BALANCES SUBJECT TO INTEREST RATE Average Daily Balance Method (including new Purchases): We calculate separate Balances Subject to an Interest Rate for Purchases and for each Introductory or Promotional Offer balance consisting of Purchases. We do this by: (1) calculating a daily balance for each day in the billing cycle; (2) adding all the daily balances together; and (3) dividing the sum of the daily balances by the number of days in the billing cycle. To calculate the daily balance for each day in this statement's billing cycle, we: (1) take the beginning balance; (2) add an amount equal to the applicable Daily Periodic Rate multiplied by the previous day's daily balance; (3) add new Purchases, new Account Fees, and new Transaction Fees; and (4) subtract applicable payments and credits. If any daily balance is less than zero we treat it as zero. Average Balance Method (including new Balance Transfers and new Cash Advances): We calculate separate Balances Subject to an Interest Rate for Balance Transfers, Cash Advances, and for each Introductory or Promotional Offer balance consisting of Balance Transfers or Cash Advances. We do this by: (1) calculating a daily balance for each day in this statement's billing cycle; (2) calculating a daily balance for each day prior to this statement's billing cycle that had a "Pre-Cycle balance" - a Pre-Cycle balance is a Balance Transfer or a Cash Advance with a transaction date prior to this statement's billing cycle but with a posting date within this statement's billing cycle; (3) adding all the daily balances together; and (4) dividing the sum of the daily balances by the number of days in this statement's billing cycle. To calculate the daily balance for each day in this statement's billing cycle, we: (1) take the beginning balance; (2) add an amount equal to the applicable Daily Periodic Rate multiplied by the previous day's daily balance; (3) add new Balance Transfers, new Cash Advances and Transaction Fees; and (4) subtract applicable payments and credits. If any daily balance is less than zero we treat it as zero. To calculate a daily balance for each day prior to this statement's billing cycle that had a Pre-Cycle balance: (1) we take the beginning balance attributable solely to Pre-Cycle balance (which will be zero on the transaction date of the first Pre-Cycle balance); (2) add an amount equal to the applicable Daily Periodic Rate multiplied by the previous day's daily balance; (3) and add only the applicable Pre-Cycle balances and their related Transaction Fees. We exclude from this calculation all transactions posted in previous billing cycles. For the complete terms and conditions of your account, consult your Credit Card Agreement. This account is issued and administered by Bank of America. Bank of America is a registered trademark of Bank of America Corporation. PAYMENTS - We credit mailed payments as of the date received, if the payment is: (1) received by 5 p.m. local time at the address shown on the remittance portion of your monthly statement; (2) paid with a check drawn in U.S. dollars on a U.S. financial institution or a U.S. dollar money order; and (3) sent in the return envelope with only the remittance portion of your statement accompanying it. Payments received by mail after 5 p.m. local time at the remittance address on any day including the Payment Due Date, but that otherwise meet the above requirements, will be credited as of the next day. Payments made online or by phone will be credited as of the date of receipt if made by 5 p.m. Central. Credit for any other payments may be delayed up to five days. Cash payments made with our tellers will only be accepted with a valid identification (ID). No payment shall operate as an accord and satisfaction without the prior written approval of one of our Senior Officers. We process most payment checks electronically by using the information found on your check. Each check authorizes us to create a one-time electronic funds transfer (or process it as a check or paper draft). Funds may be withdrawn from your account as soon as the same day we receive your payment. Checks are not returned to you. If you have authorized us to pay your credit card bill automatically from your savings or checking account with us, you can stop the payment on any amount you think is wrong. To stop payment, your letter must reach us at least three business days before the automatic payment is scheduled to occur. Change of Address/Phone number: Online at www.bankofamerica.com Please do not add any written communication in this space. Transactions <table> <tr> <th>Transaction Date</th> <th>Posting Date</th> <th>Description</th> <th>Reference Number</th> <th>Account Number</th> <th>Amount</th> <th>Total</th> </tr> <tr> <td>05/09</td> <td>05/09</td> <td><b>Interest Charged</b></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>05/09</td> <td>05/09</td> <td>INTEREST CHARGED ON PURCHASES</td> <td></td> <td></td> <td>60.21</td> <td></td> </tr> <tr> <td>05/09</td> <td>05/09</td> <td>INTEREST CHARGED ON BALANCE TRANSFERS</td> <td></td> <td></td> <td>0.00</td> <td></td> </tr> <tr> <td>05/09</td> <td>05/09</td> <td>INTEREST CHARGED ON DIR DEP&CHK CASHADV</td> <td></td> <td></td> <td>0.00</td> <td></td> </tr> <tr> <td>05/09</td> <td>05/09</td> <td>INTEREST CHARGED ON BANK CASH ADVANCES</td> <td></td> <td></td> <td>0.00</td> <td></td> </tr> <tr> <td colspan="6"><b>TOTAL INTEREST CHARGED FOR THIS PERIOD</b></td> <td><b>$60.21</b></td> </tr> </table> <table> <tr> <td>Total fees charged in 2024</td> <td>$156.00</td> </tr> <tr> <td>Total interest charged in 2024</td> <td>$282.72</td> </tr> </table> Interest Charge Calculation Your Annual Percentage Rate (APR) is the annual interest rate on your account. <table> <tr> <th>Type of Balance</th> <th>Annual Percentage Rate</th> <th>Promotional Transaction Type</th> <th>Promotional Offer ID</th> <th>Promotional Rate End Date</th> <th>Balance Subject to Interest Rate</th> <th>Interest Charges by Transaction Type</th> </tr> <tr> <td>Purchases</td> <td>28.24%V</td> <td></td> <td></td> <td></td> <td>$ 2,594.12</td> <td>$ 60.21</td> </tr> <tr> <td>Balance Transfers</td> <td>28.24%V</td> <td></td> <td></td> <td></td> <td>$ 0.00</td> <td>$ 0.00</td> </tr> <tr> <td>Direct Deposit and Check Cash Advances</td> <td>29.99%V</td> <td></td> <td></td> <td></td> <td>$ 0.00</td> <td>$ 0.00</td> </tr> <tr> <td>Bank Cash Advances</td> <td>29.99%V</td> <td></td> <td></td> <td></td> <td>$ 0.00</td> <td>$ 0.00</td> </tr> </table> APR Type Definitions Daily Interest Rate Type: V = Variable Rate (rate may vary) Important Messages You're a valued customer and we want you to know that we haven't received your current payment due. Please send your payment due today. If you've already mailed it, thank you. Your statement balance exceeds the Total Credit Line. To ensure uninterrupted use of your account, please make a payment to bring your balance under the Total Credit Line. There is no fee for being over your Total Credit Line. When this statement was created, the account's Credit Line was in a restricted status and not available for use. You can request a copy of this statement in either Braille or Large Print by calling 800.432.1000 or going to bankofamerica.com and enter Visually Impaired Access from the home page. Please see important information entitled "Your Billing Rights" on the following pages. Your Reward Summary Allways REWARDS SUMMARY 309273908 0 PURCHASE POINTS 0 PROMOTION POINTS 0 TOTAL POINTS EARNED VISIT WWW.ALLEGIANT.COM Make the most of your rewards program today! ¿Estados de cuenta en español? ¡Podemos hacerlos para usted! Llame al 800.688.6086 o visite su centro financiero más cercano. Se aplican exclusiones. No se encuentra disponible para cuentas Comerciales, Merrill, Private Bank y Pequeñas Empresas. Statements in Spanish? We can do that for you! Call 800.432.1000, or visit your nearest financial center. Exclusions apply. Not available for Commercial Merrill, Private Bank and Small Business accounts. YOUR BILLING RIGHTS Keep This Document For Future Use This notice tells you about your rights and our responsibilities under the Fair Credit Billing Act. What To Do If You Find A Mistake On Your Statement If you think there is an error on your statement, write to us at: Bank of America P.O. Box 672050 Dallas, TX 75267-2050 In your letter, give us the following information: • Account information: Your name and account number. • Dollar amount: The dollar amount of the suspected error. • Description of problem: If you think there is an error on your bill, describe what you believe is wrong and why you believe it is a mistake. Note: It is very helpful if your letter includes the transaction date and the reference number for the charge, if available. You must contact us: • Within 60 days after the error appeared on your statement. • At least 3 business days before an automated payment is scheduled, if you want to stop payment on the amount you think is wrong. You must notify us of any potential errors in writing or electronically using online or mobile banking. You may call us, but if you do we are not required to investigate any potential errors and you may have to pay the amount in question. What Will Happen After We Receive Your Letter When we receive your letter, we must do two things: 1. Within 30 days of receiving your letter, we must tell you that we received your letter. We will also tell you if we have already corrected the error. 2. Within 90 days of receiving your letter, we must either correct the error or explain to you why we believe the bill is correct. While we investigate whether or not there has been an error: • We cannot try to collect the amount in question, or report you as delinquent on that amount. • The charge in question may remain on your statement, and we may continue to charge you interest on that amount. • While you do not have to pay the amount in question, you are responsible for the remainder of your balance. • We can apply any unpaid amount against your Total Credit Line. After we finish our investigation, one of two things will happen: • If we determine there was a mistake: You will not have to pay the amount in question or any interest or other fees related to that amount. • If we do not believe there was a mistake: You will have to pay the amount in question, along with applicable interest and fees. We will send you a statement of the amount you owe and the date payment is due. We may then report you as delinquent, including to credit reporting agencies, if you do not pay the amount we think you owe. If you receive our explanation but still believe your bill is wrong, you must write to us within 10 days telling us that you still refuse to pay. If you do so, we cannot report you as delinquent without also reporting that you are questioning your bill. We must tell you the name of anyone to whom we reported you as delinquent, and we must let those organizations know when the matter has been settled between us. If we do not follow all of the rules above, you do not have to pay the first $50 of the amount you question even if your bill is correct. Your Rights If You Are Dissatisfied With Your Credit Card Purchases If you are dissatisfied with the goods or services that you have purchased with your credit card, and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the purchase. To use this right, all of the following must be true: 1. The purchase must have been made in your home state or within 100 miles of your current mailing address, and the purchase price must have been more than $50. (Note: Neither of these are necessary if your purchase was based on an advertisement we mailed to you, or if we own the company that sold you the goods or services.) 2. You must have used your credit card for the purchase. Purchases made with Cash Advances, for instance from an ATM or with a check that accesses your credit card account, do not qualify. 3. You must not yet have fully paid for the purchase. If all of the criteria above are met and you are still dissatisfied with the purchase, contact us electronically using online or mobile banking or in writing at: Bank of America P.O. Box 672050 Dallas, TX 75267-2050 While we investigate, the same rules apply to the disputed amount as discussed above. After we finish our investigation, we will tell you our decision. At that point, if we think you owe an amount and you do not pay, we may report you as delinquent.