Comerica Bank sign on a building in Walnut Creek, California, March 30, 2023.
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The Consumer Financial Protection Bureau filed the complaint Friday. comerica bankaccused local banks of failing to manage federal benefit programs that use prepaid debit cards.
The complaint alleges that Comerica Bank “intentionally terminated” more than 24 million customer service calls while distributing federal benefits through the 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.
Comerica filed a complaint with the CFPB on November 8, alleging that the CFPB overreached in its handling of the case and that “as the financial agent for the Direct Express program, Comerica generally acted with oversight and knowledge.” He doesn’t admit what he did.” obtain federal approval,” the complaint states.
“Through the CFPB investigation, we have provided information and information to explain the unique nature of this program and the fact that it operates under the oversight of the Fiscal Bureau,” said Louis Mora, Comerica’s vice president of media affairs. We have cooperated by sharing data.” “Despite our good faith efforts to provide this important context, the CFPB has consistently ignored our claims and documentation.”
“We will continue to vigorously defend our track record as a financial agent for the Direct Express program and remain committed to serving our cardmembers,” Mora continued.
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. In another order.
—NBC News’ Steve Kopack contributed to this report