CFPB sues Comerica Bank, alleging it failed to administer federal benefits program

Published On Dec 6, 2024, 10:52 AM

The CFPB has filed a lawsuit against Comerica Bank, claiming the bank mishandled the administration of the Direct Express program, which provides prepaid debit cards to federal benefits recipients, many of whom are older or disabled. Allegations include the intentional termination of over 24 million customer service calls, unjust ATM fee charges for more than 1 million cardholders, and mishandling fraud complaints. This situation raises serious concerns about Comerica's operational practices and its impact on vulnerable populations who rely on these benefits. Comerica plans to defend its actions, asserting that it operated under federal oversight.