01:33 PM EST, 12/06/2024 (MT Newswires) -- (Updates to include Comerica's ( CMA ) response in the fifth and sixth paragraphs.)

Comerica's ( CMA ) Comerica Bank unit is facing allegations of mistreating millions of mainly disabled and elderly customers, potentially leading to penalties under a civil enforcement action, the US Consumer Financial Protection Bureau said Friday.

The CFPB is suing Comerica ( CMA ) for failing to serve 3.4 million "Direct Express" cardholders, who are primarily unbanked individuals receiving federal benefits. The agency alleges that the bank's actions harmed vulnerable Americans including seniors and disabled individuals relying on Social Security and other federal assistance.

The CFPB alleges that Comerica ( CMA ) engaged in illegal practices, such as deliberately disconnecting 24 million customer service calls, preventing cardholders from exercising their legal rights, charging illegal ATM fees to over 1 million cardholders, and mishandling fraud complaints.

The CFPB said it is seeking a court order to stop these practices, provide refunds to affected customers, and impose civil penalties to be directed to the CFPB's "victim relief fund."

A Comerica Bank spokesperson told MT Newswires it cooperated with the CFPB's investigation, providing data to show the program's unique structure and Fiscal Service oversight. The bank claimed the CFPB disregarded its arguments and documentation.

"We will continue to vigorously defend our record as the financial agent for the Direct Express program and remain committed to serving our cardholders," the spokesperson added.

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