CFPB Sues Comerica Bank Over Alleged Mismanagement of Federal Benefits Program

The lawsuit accuses Comerica of disconnecting millions of calls, charging illegal fees, and mishandling fraud complaints for vulnerable Direct Express cardholders.

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Comerica Bank, alleging systematic violations against 3.4 million Direct Express cardholders, many of whom are disabled or elderly Americans relying on federal benefits.
The CFPB claims Comerica deliberately disconnected over 24 million customer service calls, charged illegal ATM fees to over 1 million cardholders, and failed to properly investigate more than 20,000 fraud complaints.
Comerica is accused of forcing customers to close accounts to stop preauthorized payments, resulting in additional fees, and misleading fraud victims by denying errors even when fraud was identified.
The Direct Express program, which Comerica has managed since 2008, is transitioning to the Bank of New York Mellon in January 2025 following Treasury's decision to award the new contract.
Comerica has denied the allegations, citing compliance with federal oversight, and filed a countersuit in November accusing the CFPB of regulatory overreach.