The Consumer Financial Protection Bureau (CFPB) has sued Walmart and Branch Messenger for allegedly forcing delivery drivers in Walmart's gig program to use costly deposit accounts to get paid and misrepresenting how they could access their wages. The CFPB alleges that Walmart and Branch violated federal law by forcing approximately 1 million drivers on its Spark program to use Branch for payment and threatening to terminate those who didn't.
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In a statement emailed to The Associated Press on Friday, a Walmart spokesperson called the lawsuit “rushed” and said it was ”riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law. “
Walmart Branch Messenger CFPB Gig Workers Delivery Drivers Consumer Protection Wage Access
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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'.
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CFPB Sues Walmart and Branch Messenger Over Alleged Driver Pay PracticesThe 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.
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