Feds sue Comerica Bank, allege fraud

The Consumer Financial Protection Bureau on Friday sued Comerica Bank for allegedly charging illegal fees, mishandling fraud complaints and deliberately disconnecting service calls.

The lawsuit filed in the U.S. District Court for the Northern District of Texas seeks a judge’s order to halt the alleged practices at the subsidiary of Comerica Inc. It also seeks to provide refunds to affected customers that includes recipients of Social Security, Supplemental Security Income and veterans benefits, and pay unspecified civil penalties into the CFPB’s victim relief fund. Comerica Bank is one of the 25 largest bank holding companies in the country.

The focus of the lawsuit is the bank’s 3.4 million Direct Express cardholders who the bureau described as Americans who mostly don’t have bank accounts and are receiving federal benefits. It accuses Comerica of intentionally disconnecting 24 million customer service calls, charging illegal ATM fees to more than 1 million cardholders and impeding customers from exercising their rights under the law.

Comerica Bank accused the bureau of “doubling down” with a countersuit after it filed its own lawsuit against the bureau last month, challenging the CFPB’s “regulatory overreach” and handling of the case.

Chipotle is raising menu prices by 2%

Chipotle’s chief corporate affairs officer, Laurie Schalow, confirmed Friday that the Newport Beach-based Mexican restaurant chain was implementing a 2% price increase nationally.

Schalow said it’s the first time the company has raised its prices in more than a year.

Chipotle revealed the price increase after an analyst report released earlier this week by investment bank Truist Securities noted a 2% price increase at approximately 20% of the chain’s 3,500 U.S. stores.

Truist, which raised its price target for Chipotle’s shares, also reported that customer traffic at the chain’s restaurants accelerated in November.

Chipotle said in October that its food, beverage and packaging costs all increased in the third quarter. It cited avocados as an example.

Chipotle also cited the cost of ensuring it was providing “consistent and generous portions” to its customers. Former Chairman and CEO Brian Niccol said in July that Chipotle was retraining workers at approximately 10% of Chipotle’s stores after customers complained on social media that they were getting smaller portions.

Oven gloves recalled due to burn risk

More than one million pairs of oven gloves are being recalled due to a burn hazard, after dozens of injury reports.

Video and e-commerce retailer QVC is recalling about 1.1 million of its “Temp-tations Oven Gloves” because they fail to provide sufficient heat protection. According to a Thursday notice published by the U.S. Consumer Product Safety Commission, QVC has received 162 reports of insufficient heat protection, including 92 minor burns.

Consumers in possession of the now-recalled gloves are urged to stop using them immediately and contact QVC for a refund. More information can be found on the recall’s online registration page.

According to the recall notice, the oven gloves were sold online at qvc.com as well as through QVC’s televised and digital shopping platforms from August 2018 to August 2024 for between $4 and $13 a pair.

Compiled from Detroit News and Associated Press reports.