The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and financial technology firm Branch Messenger, accusing them of forcing drivers to use costly deposit accounts to receive their pay. The CFPB alleges that Walmart and Branch Messenger misled drivers about the availability of same-day access to their earnings and imposed complex procedures and fees for fund transfers.
The Consumer Financial Protection Bureau is suing Walmart and a financial technology firm, alleging they illegally forced drivers into using costly deposit accounts to receive their pay. The agency alleges that Walmart and the vendor, Branch Messenger , forced the drivers, who were part of Walmart 's Spark Driver gig-work platform, to use Branch Messenger 's deposit accounts to collect their compensation — and would be terminated if they did not want to use this service.
The CFPB also alleges that Walmart and Branch Messenger misled workers about the availability of same-day access to their earnings, and that drivers had to follow a complex process to access their funds. Even when they did access their funds, the CFPB alleges, the drivers faced delays or fees if they needed to transfer the money into an account of their choice — resulting in workers paying more than $10 million in fees since 2021 to transfer earnings. “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” said CFPB Director Rohit Chopra. “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.” Representatives for Walmart and Branch Messenger did not immediately respond to requests for comment. The CFPB has announced a flurry of rules and suits this month as the Biden administration winds down and the agency's future is clouded by uncertainty. Last week, the CFPB sued three of America's largest banks on accusations that they failed to curb fraud on the digital payments platform Zelle. The banks, as well as Zelle's operator, which was also named in the suit, have denied the charges. It also sued Comerica Bank for allegedly harming consumers enrolled in the federal government's Direct Express federal benefits delivery program. Comerica has denied the charges and is countersuing the CFP
FINANCE CFPB Walmart Branch Messenger Gig Workers Consumer Protection
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Walmart, Branch Messenger Sued by CFPB for Allegedly Exploiting Delivery Driver PayThe Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and work-scheduling platform Branch Messenger for forcing delivery drivers to use poorly managed and costly deposit accounts. The lawsuit alleges that Walmart and Branch opened Branch accounts for over 1 million drivers without consent and deposited their pay into these accounts, leading to delays, fees, and millions in 'junk fees' incurred by drivers. The CFPB also accuses Branch of various violations, including failing to investigate errors, provide disclosures, and follow stop payment requests.
Read more »
CFPB Sues Walmart and Branch Messenger for Allegedly Exploiting Delivery Drivers with Costly AccountsThe Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and work-scheduling platform Branch Messenger, accusing them of forcing delivery drivers to use poorly managed and costly deposit accounts. The lawsuit alleges that Walmart and Branch opened Branch accounts for over 1 million drivers without their consent and deposited their pay into these accounts, leading to millions in 'junk fees'.
Read more »
CFPB Sues Walmart and Branch Messenger Over Alleged Forced Use of Costly AccountsThe CFPB accuses Walmart and Branch Messenger of forcing delivery drivers to use poorly managed and costly deposit accounts to receive their pay. The lawsuit alleges that drivers were not given consent and faced fees for transferring funds.
Read more »
Walmart and Branch Messenger Sued for Allegedly Exploiting Delivery Drivers with Costly AccountsThe Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and work-scheduling platform Branch Messenger for allegedly forcing delivery drivers to use poorly managed and costly deposit accounts. The lawsuit claims that Walmart and Branch opened Branch accounts for over 1 million drivers without their consent and charged them excessive fees, potentially leading to over $10 million in losses. The CFPB alleges that Walmart threatened drivers with termination if they refused to use these accounts and misled them about accessing their earnings. Branch is also accused of failing to investigate errors, provide proper disclosures, maintain records, and honor stop payment requests.
Read more »
CFPB Sues Walmart and Branch for Alleged Driver Account AbuseThe Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and Branch Messenger, accusing them of forcing delivery drivers to use poorly managed and costly deposit accounts. The lawsuit alleges that Walmart and Branch opened Branch accounts for drivers without their consent and deposited their pay into these accounts, resulting in millions of dollars in fees for drivers.
Read more »
CFPB Sues Walmart and Branch for Allegedly Exploiting Delivery Drivers with Costly Bank AccountsThe Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and work-scheduling platform Branch Messenger, alleging that they forced delivery drivers to use poorly managed and expensive deposit accounts to receive their pay.
Read more »