Comerica Bank is facing a lawsuit from the Consumer Financial Protection Bureau (CFPB), alleging that the bank has systematically harmed its 3.4 million Direct Express cardholders, primarily unbanked Americans, by charging illegal fees and providing poor customer service.
The CFPB claims that Comerica deliberately disconnected millions of phone calls from cardholders, causing wait times up to several hours to speak with a representative. The bank also allegedly charged excessive ATM fees to over 1 million cardholders between April 2019 and April 2024.
Comerica had lost its contract with the federal government to administer the Direct Express program in November after serving as the financial agent for nearly two decades. The CFPB is asking the court to order Comerica to halt these practices, provide refunds to affected customers, and pay civil penalties that would go to the CFPB’s victim relief fund.
The agency also accused Comerica of mishandling fraud complaints, failing to investigate errors in a timely manner, and requiring cardholders to waive their consumer protections. The CFPB said its investigation found that Comerica failed to provide adequate assistance to thousands of Direct Express cardholders who were forced to close their accounts due to preauthorized payment issues.
The complaint is the latest in a series of investigations into Comerica’s handling of federal benefits programs, including the Direct Express program. The CFPB said its investigation found that Comerica prioritized profits over customers, “boosting its bottom line at the expense of Americans living on a fixed income.”
Comerica has responded to the lawsuit by stating that it will vigorously defend itself and remains committed to serving its cardholders. However, the bank’s actions have raised concerns about its handling of sensitive customer information and its commitment to providing fair and transparent services to vulnerable populations.
Source: https://eu.freep.com/story/money/personal-finance/susan-tompor/2024/12/06/comerica-bank-direct-express-card-sued/76819402007