Case Overview: A class action lawsuit alleges Comerica Bank is profiting from interest earned on federal benefits funds, money that belongs to millions of Americans using the Direct Express program.
Consumers Affected: Individuals in the U.S. who received federal benefits funds from the government that were held by Comerica.
Court: U.S. District Court for the Eastern District of Michigan
Comerica Bank is facing a class action lawsuit alleging that it illegally retained investment income earned from the federal benefits funds it manages—profits that rightfully belong to millions of vulnerable Americans.
The lawsuit claims that Comerica, which administers the Direct Express program on behalf of the U.S. Treasury, has quietly collected over $100 million annually in interest from funds meant for Social Security recipients, disabled individuals, veterans, and others in need.
The lawsuit was filed by Mary Pustelak and Linda Carle, both Michigan residents and longtime enrollees in the Direct Express program. Pustelak participated from 2013 until 2024, while Carle has been enrolled since 2016. Each month, their federal benefits were deposited into Comerica-managed accounts, accessible via Direct Express debit cards.
But what they—and millions of others—didn’t realize was that before they ever spent their money, Comerica was using their funds to generate substantial investment income, the lawsuit alleges. Under Comerica’s own terms of service, account holders are the rightful owners of the funds. Yet, according to the lawsuit, the bank has never shared any of the interest it earned, instead pocketing the profits for itself.
Since 2008, Comerica has held an exclusive contract with the U.S. Treasury’s Bureau of Fiscal Service to administer the Direct Express program. Each year, the bank receives around $3 billion in federal benefits funds for distribution to roughly 3.4 million enrollees.
The lawsuit alleges that Comerica exploited the gap between the time it received these deposits and the moment beneficiaries withdrew them. By investing the funds in the interim, Comerica was able to generate interest and other returns—money that, under Michigan law, legally belongs to the account holders.
The Direct Express program was specifically designed for unbanked individuals—people who don’t have traditional checking or savings accounts. These recipients had little reason to suspect that Comerica was profiting off their deposits before they could even access their own money.
Comerica isn’t the only financial institution facing legal scrutiny for allegedly deceiving consumers.
In their lawsuit against Comerica Bank, Pustelak and Carle want to represent anyone in the US who, during the six years preceding the lawsuit, received federal benefits funds from the government that were held by Comerica pursuant to the Direct Express program.
Case Details
Plaintiffs' Attorneys
Are you a Direct Express cardholder? Do you suspect Comerica is mishandling your benefits? Share your story below.
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