Comerica Bank was hit with a proposed class action alleging it improperly seized earnings from funds it held for recipients of Social Security payments and other federal benefits.
The complaint, filed Thursday in the US District Court for the Eastern District of Michigan, alleges the accounts Comerica maintained for benefit recipients constituted “special deposits” under Michigan law, with the recipients treated as owners of the deposited funds. Any earnings on those funds belonged to the owners, not Comerica, under Michigan law, according to the lawsuit.
Comerica’s failure to remit the earnings to recipients breached its contract with them and amounted ...
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