CFPB sues Comerica Bank over mishandling of federal benefits program

The Consumer Financial Protection Bureau (CFPB) has sued Comerica Bank, claiming it failed to properly manage a federal benefits program using prepaid debit cards. The lawsuit alleges the bank disconnected over 24 million customer service calls and mishandled fraud complaints. Comerica has been administering the Direct Express program since 2008, which provides prepaid cards for Social Security and other federal benefits. The CFPB states that beneficiaries often could not reach customer service for help, despite claims of 24/7 availability. In response, Comerica argues that it acted under federal oversight and has cooperated with the CFPB's investigation. The bank plans to defend its actions as the financial agent for the Direct Express program.