Bank's Handling of Prepaid Cards Draws Scrutiny

Comerica Bank is in hot water with the Consumer Financial Protection Bureau (CFPB). The bank had a deal with the U. S. Treasury to manage federal benefits on prepaid debit cards, used mainly by the elderly and disabled. But the CFPB says Comerica hasn't been treating these customers fairly. Since 2019, the bank is accused of cutting off millions of calls before customers could talk to anyone and making others wait for hours. Plus, they allegedly charged for free services and ignored fraud reports. Comerica, however, denies these claims and has sued the CFPB for what they call "overstepping their bounds. " The CFPB's accusations paint a picture of a bank that's not living up to its responsibilities. These prepaid cards are a lifeline for many who can't use traditional banking. If the CFPB's claims are true, it raises serious questions about how Comerica is treating its most vulnerable customers. But Comerica's response shows they're not taking these accusations lightly. It's important to note that this isn't the first time a bank has been accused of mishandling prepaid cards. Similar issues have been raised in the past, highlighting the need for better regulation and customer service in this area.