Allegations Against Comerica Bank

(Reuters) – Regional lender Comerica (NYSE:CMA) Bank faces allegations of systematically mistreating millions of mostly disabled and elderly customers. This could lead to penalties under a new civil enforcement action, as announced by the U.S. watchdog agency for consumer finance on Friday.

The Consumer Financial Protection Bureau (CFPB) is suing Comerica for failing 3.4 million "Direct Express" card holders—primarily unbanked individuals receiving federal benefits. The agency claims Comerica deliberately disconnected their phone calls and charged illegal fees.

Rohit Chopra, the CFPB director, stated, "Comerica boosted its bottom line at the expense of Americans living on a fixed income." The Dallas-based bank has not yet responded to requests for comment.

The Direct Express program has been operational since 2008 under a U.S. Treasury contract with Comerica, providing prepaid debit cards to federal benefits recipients. The CFPB reported that Comerica's vendors intentionally dropped over 24 million customer calls before they could connect to bank representatives. Moreover, the bank allegedly imposed illegal service terms on consumers wishing to stop payments and failed to investigate account issues.