The Consumer Financial Protection Bureau accused the bank of intentionally terminating calls and mishandling fraud complaints.
The Consumer Financial Protection Bureau filed a complaint on Friday against Comerica Bank, accusing the bank of failing to administer a federal benefits program that uses prepaid debit cards. The lawsuit claims Comerica Bank"intentionally terminated" more than 24 million customer service calls, charged over 1 million cardholders ATM fees they didn't owe and mishandled fraud complaints.
The Direct Express program is a prepaid card that beneficiaries, many of whom are older and disabled, can use to pay for expenses including groceries and gas.The lawsuit claims Comerica Bank"intentionally terminated" more than 24 million customer service calls, charged over 1 million cardholders ATM fees they didn't owe and mishandled fraud complaints while providing federal benefits through the Direct Express prepaid debit card program. "By deliberately disconnecting millions of calls and harvesting illegal junk fees, Comerica boosted its bottom line at the expense of Americans living on a fixed income," CFPB Director Rohit Chopra said.The Direct Express program is a prepaid card that beneficiaries of Social Security and other federal programs can use to pay for expenses including groceries and gas. Comerica has been contracted with the Department of the Treasury since 2008 to administer the program and handle customer service for the millions of Americans using the prepaid card, many of whom are disabled and older and don't have a bank.advertises 24/7 customer service, the CFPB alleges that"when people had problems with their accounts, it was often impossible to talk to someone who would help."Bank of America $100 million for mishandling state unemployment benefits in 2020 and 2021. The Office of the Comptroller of the Currency also fined the bank $125 million in a separate order.American Airlines chooses Citi as sole credit card partner, drops Barclays
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
30% of federal student loan borrowers have gone without food or medicine, CFPB findsThirty percent of student loan borrowers say they’ve gone without food or medicine due to their monthly bills, the Consumer Financial Protection Bureau…
Read more »
CFPB is reportedly trying to put Google under bank-like supervisionThe Consumer Financial Protection Bureau wats to put Google under federal supervision, The Washington Post reports, subjecting it to monitoring and inspections.
Read more »
Detroit Tigers Adding More Amenities to Comerica Park That Fans Will LoveComerica Park is getting some upgrades behind home plate that Detroit Tigers fans will love.
Read more »
Apple Pay, other tech firms come under CFPB regulatory oversightCFPB can already take action against companies that break the law, the new rule would allow the CFPB to regularly supervise the large digital-wallet and payments firms and their practices.
Read more »
CFPB Proposes Crackdown on Data Brokers That Sell Sensitive Personal InformationNewswire Editor is a Common Dreams staff position.
Read more »
CFPB sues Comerica Bank for failing to administer federal benefits programThe Consumer Financial Protection Bureau accused the bank of intentionally terminating calls and mishandling fraud complaints.
Read more »