Overview

• 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.