A Comerica Bank sign on a building in Walnut Creek, California, March 30, 2023.
Smith Collection/gado | Archive photos | Getty Images
The Consumer Financial Protection Bureau filed a complaint Friday against Comericabankaccusing the regional bank of failing to administer a federal benefits program that uses prepaid debit cards.
The lawsuit alleges that Comerica Bank “intentionally terminated more than 24 million customer service calls,” charged more than 1 million cardholders ATM fees they did not owe and mishandled fraud complaints while providing federal benefits through the Direct Express prepaid debit card program.
“By deliberately dropping millions of calls and collecting illegal junk fees, Comerica has increased its bottom line at the expense of Americans living on a fixed income,” said CFPB Director Rohit Chopra.
The Direct Express program is a prepaid card that beneficiaries of Social Security and other federal programs can use to pay for expenses, including groceries and gas. Comerica has had a contract with the Treasury Department since 2008 to administer the program and provide customer service for the millions of Americans who use the prepaid card, many of whom are disabled, elderly and unbanked.
While Direct Express's website advertises 24/7 customer service, the CFPB claims that “when people had problems with their accounts, it was often impossible to talk to someone who would help.”
The CFPB has taken action against banks in the past for mishandling benefits, including in 2022 when the agency fined Bank of America $100 million for mishandling state unemployment benefits in 2020 and 2021. It Office of the Comptroller of the Coin also fined the bank $125 million. in a separate order.
Comerica Bank representatives did not immediately respond to a request for comment.
