Federal regulatory body files lawsuit against Comerica Bank, alleging systematic neglect in serving federal benefit recipients.
In a significant development, the Consumer Financial Protection Bureau (CFPB) has sued Comerica Bank over alleged regulatory violations and mishandling of the Direct Express program. This program delivers government benefits to approximately 3.4 million Americans, most of whom are unbanked.
The CFPB's investigation, which began in 2021, uncovered several specific issues. Comerica is accused of deliberately dropping about 24 million consumer calls to its customer service lines, effectively denying timely customer support. The bank is also alleged to have illegally charged approximately one million consumers for ATM fees without proper authorization or disclosures.
The investigation also highlighted widespread complaints about technical glitches, misrouted or lost funds, payment fraud, and unresponsiveness or unavailability of customer service for Direct Express cardholders. The CFPB emphasised particular risks affecting senior citizens, as electronic payment fraud and difficulties in resolving such fraud are significant concerns alongside traditional paper check fraud.
Comerica is also accused of denying refunds to Direct Express beneficiaries who alleged money was stolen from their accounts, leading to a proposed settlement of fraud claims against the bank.
The bank maintains its record as the financial agent for the Direct Express program and remains committed to serving its cardholders. However, the CFPB alleges that Comerica boosted its bottom line at the expense of Americans living on a fixed income.
Comerica claims that it has cooperated with the CFPB by sharing information and data during the investigation. The bank argues that the CFPB has consistently ignored its arguments and documentation.
In response to the lawsuit, Comerica, in the U.S. District Court for the Northern District of Texas, claims that the CFPB has failed to acknowledge its actions were overseen by the federal government.
This lawsuit reflects concerns about Comerica’s handling of customer service, fee transparency, fraud prevention, and responsiveness to consumer complaints under its role as the financial service provider for the government’s Direct Express prepaid debit card program.
Mastercard, associated with Direct Express, did not directly address complaints in the CFPB briefing but reaffirmed its ongoing partnerships in government payment programs.
This summary is based on the latest publicly available information up to July-August 2025. The CFPB originally filed a lawsuit against Comerica but dropped it in April 2025 amid shifts in agency priorities and staffing under the Trump administration.
[1] CFPB Press Release, "CFPB Sues Comerica Bank for Illegal ATM Fees and Mishandling of Fraud Complaints" (July 2025). [2] Comerica Response to CFPB Lawsuit, "Comerica Responds to CFPB Lawsuit Regarding Direct Express Program" (July 2025).
The Consumer Financial Protection Bureau (CFPB) alleges that Comerica, a bank within the financial industry, boosted its profits by mishandling the Direct Express program, which delivers government benefits to millions of unbanked Americans, through illegal ATM fees, denying refunds to beneficiaries, and poor handling of customer service and fraud complaints. The CFPB's lawsuit against Comerica also highlights concerns about fee transparency, fraud prevention, and responsiveness, particularly among senior citizens, in the banking-and-insurance sector.
