On March 30, 2023, a Comerica Bank sign could be seen on one of their buildings in Walnut Creek, California, captured by photographer Smith Collection at Getty Images. Recently, the Consumer Financial Protection Bureau (CFPB) has taken legal action against Comerica Bank, a regional banking institution. The bureau’s complaint alleges significant shortcomings in Comerica’s administration of a federal benefits program that distributes funds via prepaid debit cards.
The CFPB’s lawsuit indicates that Comerica Bank “intentionally terminated” more than 24 million customer service calls, imposed ATM fees unfairly on over a million cardholders, and inadequately addressed fraud complaints. These issues emerged in connection with the distribution of benefits through the Direct Express prepaid debit card program.
CFPB Director Rohit Chopra stated, “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.” The Direct Express card is intended for those receiving Social Security and other federal benefits to cover daily expenses such as groceries and gas. Since 2008, Comerica has been responsible for managing this program under a contract with the Department of the Treasury. The cardholders predominantly include older adults and disabled individuals who often do not have a traditional bank account.
Despite Direct Express promoting round-the-clock customer service, the CFPB claims that many users struggled to find assistance when issues arose, frequently encountering roadblocks when attempting to reach support staff. Previously, the bureau has acted against banks over similar infractions, such as the 2022 incident where Bank of America faced a $100 million fine for mishandling state unemployment benefits during 2020 and 2021. Additionally, the Office of the Comptroller of the Currency fined the bank $125 million under a separate order.
Efforts to reach Comerica Bank for a statement on the matter have not yet received a response.
