Key Points

. The Consumer Financial Protection Bureau filed a complaint against Comerica Bank, accusing it of failing to administer a federal benefit program that uses prepaid debit cards.
. The lawsuit claims that Comerica Bank “intentionally canceled” more than 24 million customer service calls, charged more than 1 million cardholders ATM fees they did not owe, and mishandled fraud complaints.
. The Direct Express program is a prepaid card that recipients, many of whom are elderly and disabled, can use to pay for expenses like groceries and gas.

The Consumer Financial Protection Bureau filed a complaint Friday against Comerica Bank
, accusing the 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 did not owe, and mishandled fraud complaints while providing federal benefits to through the Direct Express prepaid debit card program.

“By deliberately disconnecting millions of calls and charging illegal junk rates, Comerica improved its bottom line at the expense of Americans living on fixed incomes,” said CFPB Director Rohit Chopra.

The Direct Express program is a prepaid card that recipients of Social Security and other federal programs can use to pay for expenses including groceries and gas. Comerica has contracted with the Treasury Department since 2008 to administer the program and handle customer service for the millions of Americans who use the prepaid card, many of whom are disabled, elderly and unbanked.

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

Comerica filed a previous complaint against the CFPB on Nov. 8, arguing that the bureau had overstepped its bounds in its handling of the case and “has failed to recognize that, as Financial Agent for the Direct Express program, Comerica generally acted with oversight and knowledge or approval of the federal government,” the lawsuit reads.

“Throughout the CFPB’s investigation, we have cooperated by sharing information and data to illustrate the unique nature of this program and the fact that we operate with oversight from the Fiscal Service,” said Louis Mora, vice president of media relations for Comerica. “Despite our good faith efforts to provide this critical context, the CFPB has systematically ignored our arguments and documentation.”

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

The CFPB has taken action against banks for mishandling benefits in the past, including in 2022, when the bureau fined Bank of America $100 million for mishandling state unemployment benefits in 2020 and 2021. The The Office of the Comptroller of the Currency also fined the bank $125 million. in a separate order.

— NBC News’ Steve Kopack contributed to this report.