From CNBC: 2024-12-06 11:05:39

The Consumer Financial Protection Bureau filed a complaint against Comerica Bank, accusing the regional bank of mishandling a federal benefits program that uses prepaid debit cards. The lawsuit claims the bank disconnected over 24 million customer service calls, charged 1 million cardholders false ATM fees, and mishandled fraud complaints.

Comerica Bank is contracted with the Department of the Treasury to administer the Direct Express prepaid debit card program for beneficiaries of Social Security and other federal programs. The CFPB alleges that the bank intentionally terminated calls and charged illegal fees, impacting Americans living on a fixed income.

CFPB Director Rohit Chopra stated that Comerica Bank boosted its profits by disconnecting calls and charging unauthorized fees, harming vulnerable Americans. Despite advertising 24/7 customer service, the bureau claims it was difficult for cardholders to receive assistance with account issues, leading to the lawsuit against the bank.

The CFPB has previously taken action against banks for mishandling benefits, such as fining Bank of America $100 million in 2022 for mishandling state unemployment benefits during the pandemic. Comerica Bank did not respond to requests for comment regarding the lawsuit and allegations made by the Consumer Financial Protection Bureau.



Read more at CNBC: CFPB sues Comerica Bank over federal benefits program