The U.S. Consumer Financial Protection Bureau withdrew its lawsuit against Comerica Bank, which was accused of mistreating numerous disabled and elderly customers. The agency filed the lawsuit during the Biden administration but chose to dismiss it recently. This decision is part of a trend where the Trump administration has abandoned several enforcement actions initiated by the previous administration.
Comerica Bank did not offer any comments regarding the lawsuit dismissal, while a CFPB representative stated that the agency was collaborating with the bank as part of their due diligence process.
The original lawsuit claimed that Comerica Bank mishandled customers in the "Direct Express" program by terminating customer service calls and imposing unlawful fees. The program, operating since 2008 under a deal with the U.S. Treasury, provided prepaid debit cards to individuals receiving federal benefits.
Under the Trump administration's leadership of the CFPB, there have been attempts to halt, freeze, or overturn various significant cases from earlier administrations. In response to fears of imminent mass layoffs and efforts to undermine the agency's effectiveness, a federal judge ordered the Trump administration to cease its actions aimed at weakening the watchdog agency, which was established under the 2010 Dodd-Frank financial reform law to oversee consumer financial products.