The Consumer Financial Protection Bureau (CFPB) is suing Comerica Bank for harming 3.4 million Direct Express cardholders, mainly unbanked Americans receiving federal benefits like Social Security. Allegations include:
- Disconnected Calls: 24 million customer service calls were intentionally dropped.
- Illegal ATM Fees: Over 1 million cardholders were charged fees for free withdrawals.
- Fraud Mishandling: Fraud victims were misled or ignored.
- Account Issues: Comerica failed to investigate account errors over 20,000 times.
The CFPB seeks to stop these practices, secure refunds for customers, and impose penalties to fund victim relief. Direct Express provides federal benefits through prepaid debit cards, often used by seniors and disabled individuals.
Consumers can report complaints at CFPB’s website or by calling (855) 411-CFPB (2372).
"Harming disabled and older Americans"
“The CFPB is suing Comerica Bank for illegally harming disabled and older Americans who count on Social Security and other federal benefits,” said CFPB Director Rohit Chopra. “By deliberately disconnecting millions of calls and harvesting illegal junk fees, Comerica boosted its bottom line at the expense of Americans living on a fixed income.”
Comerica Bank is a subsidiary of Comerica Inc. (NYSE: CMA), a publicly traded financial services company that is among the 25 largest bank holding companies in the United States. Comerica is incorporated in Delaware and headquartered in Texas.
2008, the Department of Treasury has contracted with Comerica Bank to administer the Direct Express program, which allows federal beneficiaries to receive their monthly benefits payments through prepaid debit cards. Direct Express currently serves roughly 3.4 million Americans.
Direct Express customers are "captive" to Comerica, CFPB said. Rather than making sure that there was sufficient customer service to handle calls from Social Security and other benefits recipients, Comerica cut corners to boost its bottom line, the agency said.
The CFPB’s lawsuit seeks to stop Comerica’s unlawful conduct, to provide redress for harmed borrowers, and the imposition of a civil money penalty, which would be paid into the CFPB’s victims relief fund.
Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).