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 on Friday filed charges against Comerica Bank, accusing the regional bank of failing to administer federal benefit programs using prepaid debit cards.
The complaint alleges that Comerica Bank “intentionally terminated” more than 24 million customer service calls while distributing federal benefits through its Direct Express prepaid debit card program. It alleges that it charged more than 1 million cardholders unpaid ATM fees and improperly handled fraud complaints.
CFPB Director Rohit Chopra said, “By intentionally disconnecting millions of calls and charging illegal junk fees, Comerica boosted its profits at the expense of Americans living on fixed incomes.” said.
The Direct Express program is a prepaid card that beneficiaries of Social Security and other federal programs can use to pay for things like groceries and gas. Comerica has been contracted by the Treasury Department since 2008 to manage the program and provide customer service to the millions of unbanked Americans who use prepaid cards, many of them disabled and elderly. are.
Direct Express’ website advertises 24/7 customer service, but the CFPB claims that “if you had a problem with your account, you often did not have access to someone who could help.” Masu.
The CFPB has taken actions against banks in the past for fraudulently processing benefits, including a $100 million fine against Bank of America for fraudulently processing state unemployment benefits in 2020 and 2021. It also includes 2022, when it imposed a fine of $1. The Office of the Comptroller of the Currency also fined the bank $125 million. With another order.
Representatives for Comerica Bank did not respond to requests for comment.
