The United Bank logo on a building in Walnut Creek, California, on March 30, 2023.
The Smith Collection/Gadot | Archive Photo | Getty Images
Consumer Financial Protection Bureau File a complaint friday opposition United Credit Bankaccused Area Bank of failing to administer federal benefit programs that use prepaid debit cards.
The lawsuit alleges that AlliedSigne “knowingly terminated” more than 24 million customer service calls, charged more than 1 million cardholders ATM fees they did not owe, and mishandled fraud complaints while using Direct Express Prepaid charge card programs provide federal benefits.
“Comerica boosted profits at the expense of Americans living on fixed incomes by intentionally cutting off millions of calls and charging illegal garbage fees,” 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 been under contract with the Treasury Department since 2008 to administer the program and provide customer service to the millions of Americans who use prepaid cards, many of whom are disabled and elderly and unbanked.
Although Direct express website Touting 24/7 customer service, the CFPB claims, “When people have problems with their accounts, it’s often impossible to talk to someone willing to help.”
CFPB has taken action against banks that mishandled benefits in the past, including in 2022 When the authority imposes a fine Bank of America has been fined $100 million for mishandling state unemployment benefits in 2020 and 2021.
Representatives for United Credit Bank did not immediately respond to a request for comment.
