CFPB Drops Lawsuit Against Comerica Bank Over Federal Benefits Program

Core Points - The Consumer Financial Protection Bureau (CFPB) has dropped a lawsuit against Comerica Bank regarding its handling of the Direct Express program, which provides federal benefits to approximately 3.4 million beneficiaries [1][2] - The lawsuit initially alleged that Comerica Bank provided poor service, including disconnecting customer service calls and charging illegal ATM fees [3][4] - Comerica Bank has maintained its defense against the CFPB's claims, asserting that it cooperated with the investigation and challenged the Bureau's regulatory actions [5][6] Summary by Sections CFPB Lawsuit Dismissal - The CFPB informed a U.S. District Court of its decision to dismiss the lawsuit against Comerica Bank [1] - The lawsuit was originally filed in December, focusing on the bank's management of the Direct Express program since 2008 [2] Allegations Against Comerica Bank - The CFPB's complaint included accusations of deliberate disconnection of customer service calls, illegal ATM fees, misleading fraud victims, and failure to investigate account issues [3] - Former CFPB Director Rohit Chopra highlighted that these actions negatively impacted Americans on fixed incomes [4] Comerica Bank's Response - Comerica Bank expressed its intention to defend its record and filed a lawsuit against the CFPB for regulatory overreach [5] - The bank claimed it provided necessary context during the CFPB's investigation, which it felt was ignored [5] - CFPB Chief Legal Officer indicated that the agency was reviewing the matter under new leadership [6]