Comerica Bank is facing allegations that it systematically mistreated millions of mostly disabled and older customers, including those receiving federal benefits. The Consumer Financial Protection Bureau (CFPB) announced on Friday that it is suing the bank for failing to provide phone service to 3.4 million “Direct Express” card holders, who are primarily unbanked individuals.
The CFPB claims that Comerica deliberately disconnected these customers’ calls and charged them illegal fees, boosting its bottom line at the expense of Americans living on a fixed income. The agency alleges that the bank intentionally dropped over 24 million calls from customers before connecting them with bank representatives.
Comerica has responded by suing the CFPB in federal court, claiming that the agency overstepped its legal authority. However, the CFPB maintains that Comerica’s efforts to provide context were ignored and not taken into account. The Direct Express program, which operates under a US Treasury contract with Comerica since 2008, provides prepaid debit cards to recipients of federal benefits.
The CFPB’s allegations are serious, and if proven, could result in penalties for the bank. This case highlights the importance of protecting vulnerable customers from exploitation and ensuring that financial institutions operate fairly and transparently.
Source: https://finance.yahoo.com/news/cfpb-sues-comerica-bank-over-151115279.html