To the editor:
I am writing to follow up regarding the recent articles focusing on the Direct Express program. Comerica has worked with the Treasury Department and the Bureau of the Fiscal Service to manage Direct Express since 2008.
We are proud of the work we've done on Direct Express since its inception. People relying on federal benefits have a dependable, easy way to access their funds while receiving the support and resources of a financial institution that has served customers well for 174 years. Since the beginning of the program, Comerica has provided millions of individual payment deposits, processed billions of transactions and supported customers on millions of live customer service phone calls. We offer a robust set of tools to help Direct Express customers manage their accounts, including a mobile app and website. We also maintain a more than 90% satisfaction rate among cardholders and remain committed to our partnership with the Fiscal Service.
Direct Express serves participants in 25 different federal programs across eight agencies who receive their federal benefits, such as social security and veterans' assistance, on a prepaid debit card. This service has helped many people without bank accounts safely receive their benefits and save money by avoiding the costs of paying for check-cashing services and having access to online options for goods and services. The program has saved participants and the government millions of dollars and brought people who were underserved into the financial mainstream. It was noted in one of the May 30th articles that Comerica profits from the program. While that is true, more than 90% of the money spent on Direct Express goes to the third-party vendors managing the administration of the program, in addition to the expenses that Comerica incurs in-house. Comerica serves as the Treasury's Fiscal Agent.
The scope of the Direct Express program requires coordinating many stakeholders and working diligently to ensure that federal regulations are being followed. The recent article ignores the fact that Comerica took steps to protect Direct Express users when it became aware that a third-party vendor had not followed program protocols for reviewing customer inquiries. These steps included requiring the vendor in question to engage an independent auditor whose results were shared with the Fiscal Service. These steps were taken in cooperation with the Fiscal Service in 2020. And, we continue to perform regular assessments, including independent audits to ensure the program is managed in compliance with applicable requirements with ongoing oversight from the Fiscal Service and Treasury Department. We invest resources into making the program successful and act quickly if we find issues — from addressing individual customer concerns to oversight of vendors. While it is tempting to focus on the challenges that arise in a program of this size and complexity, the reality is that millions of Americans have been able to thrive because of Direct Express, utilizing more than $400 billion since 2008 for expenses like rent, groceries and monthly bills.
We take pride in our work supporting the Direct Express program and continue to provide excellent customer service to the millions of Americans who rely on it to receive their federal benefits. Your recent articles are an unfortunate and inaccurate distortion of our work. We are steadfastly committed to serving our customers through this critical program.
