Comerica Bank abused and neglected vulnerable customers who relied on prepaid card for federal benefits [View all]
Source: NBC News
Dec. 6, 2024, 12:12 PM EST
The Consumer Financial Protection Bureau on Friday charged Comerica Bank with abusing and neglecting vulnerable customers who receive federal benefits.
“The CFPB is suing Comerica Bank for illegally harming disabled and older Americans who count on Social Security and other federal benefits,” CFPB Director Rohit Chopra said in a release. “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.”
For nearly two decades, the CFPB said in a civil complaint, the Texas-based bank has enjoyed an exclusive contract with the U.S. Department of Treasury to handle delivery of those benefits on prepaid debit cards, known as the Direct Express program. Direct Express card users are primarily elderly and disabled Social Security beneficiaries who otherwise lack access to traditional forms of banking.
But since 2019, the CFPB says in the lawsuit, “Comerica has impaired cardholders’ ability to protect and access their funds by routinely providing deficient customer service to Direct Express cardholders.”
Read more: https://www.nbcnews.com/business/consumer/cfpb-sues-comerica-bank-rampant-abuse-neglecting-vulnerable-customers-rcna183175
Link to CFPB NEWS RELEASE - CFPB Sues Comerica Bank for Systematically Failing Disabled and Older Americans
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