Direct Express Lawsuit: Attorneys Investigate Customer Service Issues, Disputes, Fees

Attorneys working with ClassAction.org are looking into whether a class action lawsuit can be filed against Comerica Bank on behalf of Direct Express cardholders who may have been harmed by the bank’s alleged mismanagement of the program.

Specifically, a lawsuit filed by the U.S. Consumer Financial Protection Bureau (CFPB) in December 2024 accused Comerica of violating various federal laws—including the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E—by providing inadequate customer service, failing to properly investigate and respond to disputes regarding fraud, and charging illegal ATM fees while administering the Direct Express program.

According to the case, millions of Direct Express cardholders—who include senior citizens, people with disabilities, veterans, coal workers with black lung disease and others who receive federal benefits via Mastercard-branded debit cards issued by Comerica—have been harmed by the bank’s failures and could be owed money.

Although the CFPB lawsuit has since been dropped, attorneys are now looking to speak with Direct Express cardholders as they investigate whether a class action lawsuit can be filed against Comerica.

What Exactly Did the Direct Express EFTA Lawsuit Allege?

The CFPB lawsuit accused Comerica Bank of “systematically failing” millions of Direct Express cardholders in its administration of the program, which allows recipients of Social Security and other federal benefits to have their monthly payments loaded onto prepaid debit cards instead of deposited into a bank account. Direct Express has been exclusively administered by Comerica since 2008 through a contract with the U.S. Department of the Treasury, the lawsuit explained.

The case detailed numerous Direct Express customer service issues, claiming that Comerica failed to address the problems and instead chose to “cut corners to boost its bottom line,” the CFPB said in a press release about the case. According to the suit, customers frequently complained about Direct Express not answering their calls, and a CFPB investigation found that the bank intentionally disconnected at least 24 million customer service calls during times when call volume was high. Those who eventually got through to a Direct Express representative had to endure long wait times, sometimes hours, before they were connected, the lawsuit alleged. Per the case, Comerica’s customer service problems stemmed from understaffing and prevented cardholders and others from getting help with unauthorized transactions, fraud disputes, lost or stolen cards, and other issues.

The Direct Express lawsuit further alleged that Comerica charged over one million cardholders illegal ATM fees on withdrawals that should have been free. According to the case, Direct Express cardholders are legally entitled to a free ATM withdrawal once per month. However, due to a gap in time between when Comerica reset the monthly ATM fee waiver and when monthly funds were available for withdrawal, cardholders sometimes had their Direct Express free ATM withdrawal used up when attempting to withdraw money before their account was reloaded, resulting in their transaction being denied due to insufficient funds, the suit said. When they reattempted the withdrawal after their monthly funds became available, they would be charged an ATM fee even though the first withdrawal of the month should have been free, according to the case.

The Comerica lawsuit went on to claim that the bank and its vendors misled consumers by informing those who reported being fraudulently enrolled into the Direct Express program that “no error occurred” even though the bank had determined that enrollment fraud had occurred.

Per the suit, Comerica also illegally caused cardholders to waive their rights under the EFTA by requiring them to contact merchants in order to stop a preauthorized transfer in situations where the bank was legally required to stop the payment itself. In other situations, Comerica’s vendors allegedly required cardholders to request a new debit card in order to stop a preauthorized payment, causing them to lose access to their funds while waiting for the new card. If a cardholder sought to minimize their wait time, Comerica charged them a fee for expedited delivery, the lawsuit said.

Finally, the lawsuit claimed Comerica failed to properly investigate Direct Express scams and fraud within the timeframes required by law. When the bank did complete its investigations, it often provided “vague and confusing findings or blew off customers altogether,” the CFPB said.

In sum, the Direct Express EFTA lawsuit accused Comerica of committing “unfair acts or practices” in violation of the Consumer Financial Protection Act, illegally requiring cardholders to waive their rights under the EFTA, and failing to meet “numerous requirements” of Regulation E in its administration of the Direct Express program.

The CFPB dismissed its lawsuit against Comerica Bank on April 11, 2025, with a spokesperson reportedly saying the agency was “doing its due diligence to work with the bank.” Reuters noted at the time that several cases brought by the CFPB during the previous administration have since been dismissed.

Direct Express Issues: Customer Complaints

Online forums such as Reddit contain reports about customers of Direct Express having problems, including issues with Direct Express not working, the service being down, customer service representatives from Direct Express not answering, issues with fraud and hackers, and problems with the Direct Express card getting declined. One commenter observed that “these forums are filled with people with Direct express problems.”

Below is a sample of some of the complaints posted about Direct Express on Reddit [sic throughout]:

[D]irect express not answering[.] I'm in a bind. I just recieved my new direct express card, and I need to activate it over the phone. Over two days, I've spent 4 hours on hold. No one is answering, and Monday I need to pay rent or be evicted. They have no email support listed anywhere. All there is is this one number yet no one will take the call.”
— [deleted], Reddit.com

I just had this happen to me last week. Spoke to directexpress, but now I can't get through. I've been calling for the past 5 days, all hours of the day, with NO way to get hold of them. this is ridiculous. Someone used their app (which I've never signed up for or used) to change my address and cancel my card, order a new one, and change my pin. DE said they cancelled that card (it was ordered overnight shipping, so they couldn't stop it, but they said that the thieves wouldn't be able to activate it), and they reordered me a new one to my correct address, and they said they deleted the account on that app. They said they couldn't be sure it wouldn't happen again, as they 'don't report this stuff as fraud anymore' (!) and there's no way for them to put a flag on your account. What?!”
— RoxKijo, Reddit.com

I'm in the same boat as you. My card was ordered December 31. It is now January 17, 2025, and still no card to pay bills. Each call I  make says call back during less busy hours. I called at 4 a.m , and got the same message,  and then they automatically drop the call. This is by far the worst service I have ever had.”
— Winter-Operation2092, Reddit.com

I reported a fraud claim, they sent my card, I’m trying to activate it now I can’t get through to anyone. My bills are due.”
— Key_Hamster986, Reddit.com

Direct Express has done the same thing to me. I get my SS on the Direct Express card. On December 17th they shut my card off for no apparent reason and they won't tell me why they did. They said they are sending me out a replacement card which I have still never received. I even paid for an expedited card which also never came. It's now been 2 weeks and I haven't had any access to my money.”
— Sorry_Blood_9729, Reddit.com

Today is July 3, 2024. My card expires this month and I can’t get a hold of a human being. I hit a 7 then another 7 to speak to a person. All day long the inform me that I’m calling at peak hours and have to call back later. I called morning, noon, and night. Supposedly all hours are considered peak hours by them. Then the phone system disconnects and hangs up on me. What is a person supposed to do? I also can’t access my statements online like I used to. I wanted to request them by mail or email, but can’t get a human and they hang up on me every time.”
— NachStromm, Reddit.com

How Could a Direct Express Lawsuit Help?

A lawsuit against Comerica could help Direct Express cardholders get back money for any harm caused by the bank’s alleged mismanagement. It could also force Comerica to change how it administers the Direct Express program.

After you get in touch, an attorney or legal representative may reach out to you directly to ask you some questions and explain how you may be able to help get a class action lawsuit started. It doesn’t cost anything to fill out the form or speak with someone, and you’re not obligated to take legal action if you don’t want to.

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