The CFPB sued Comerica Bank, alleging that it failed to administer the federal benefits program.

Consumer Financial Protection Bureau Filed a complaint Against Friday Comerica BankAccusing a regional bank of failing to administer a federal benefits program that uses prepaid debit cards.

The lawsuit claims Comerica Bank “intentionally canceled” more than 24 million customer service calls, charged more than 1 million cardholders ATM fees they didn’t owe and Direct Express prepaid debit. Improperly resolved fraud complaints while providing federal benefits through the card program.

“By knowingly disconnecting millions of calls and collecting illegal junk fees, Comerica boosted its bottom line at the expense of Americans living on fixed incomes,” said CFPB Director Rohit Chopra. Rohit Chopra said.

The Direct Express program is a prepaid card that beneficiaries of Social Security and other federal programs can use to pay for expenses, including groceries and gas. Comerica has been under contract with the Treasury Department since 2008 to manage the program and handle customer service for the millions of Americans who use prepaid cards, many of whom are disabled and elderly and unbanked. is not

While Direct Express website Touting 24/7 customer service, the CFPB alleges that “when people had problems with their accounts, it was often impossible to talk to someone who could help.”

Comerica Filed a complaint first against the CFPB on Nov. 8, arguing that the bureau overreached in its handling of the case and “failed to recognize that, as the financial agent of the Direct Express program, Comerica generally acted with the supervision and knowledge or approval of the federal government,” the suit reads.

“During the CFPB’s investigation, we have cooperated by sharing information and data to clarify the unique nature of this program and the fact that we work closely with the Fiscal Service’s oversight,” said Luis Mora, media relations officer. said Vice President of Kamika. “Despite our good faith efforts to provide this critical context, the CFPB has consistently ignored our arguments and documentation.”

“We will continue to vigorously defend our record as a direct express program financial agent and remain committed to serving our cardholders,” Mora continued.

The CFPB has taken action against banks in the past, including in 2022, for mishandling benefits. When the Bureau fined. Bank of America $100 million in 2020 and 2021 for mishandling state unemployment benefits.

— NBC News’ Steve Kopec contributed to this report.