CFPB Drops Comerica Lawsuit Over Direct Express Program Mismanagement

The case was dismissed without prejudice, reflecting a broader regulatory shift under the Trump administration that has reversed several Biden-era enforcement actions.

• The Consumer Financial Protection Bureau (CFPB) has dismissed its lawsuit against Comerica Bank, which was accused of mistreating Direct Express program users.
• The lawsuit, filed in December 2024, alleged that Comerica disconnected millions of customer service calls and charged illegal fees, harming vulnerable benefit recipients.
• The dismissal was made without prejudice, leaving the CFPB the option to refile the case in the future if deemed necessary.
• Internal documents previously revealed significant compliance failures by Comerica, including improper handling of fraud disputes and violations of Regulation E protections.
• The Direct Express program contract was transferred from Comerica to Bank of New York Mellon in late 2024 following the compliance issues.

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