The 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 expensive 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 of dollars in 'junk fees'.
The Consumer Financial Protection Bureau on Monday sued Walmart and work-scheduling platform Branch Messenger for allegedly forcing delivery drivers to use poorly managed and costly deposit accounts in order to get paid. The lawsuit alleges that, since 2021, Walmart and Branch opened Branch accounts for drivers and then deposited drivers' pay into these accounts without the drivers' consent.
The lawsuit is the latest in a slew of actions by the CFPB against companies for mishandling consumer and worker financial accounts.Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,' CFPB Director Rohit Chopra said in a press release.'Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.' The lawsuit alleges that, since 2021, Walmart and Branch opened Branch accounts for more than 1 million drivers part of the Spark Driver Program, Walmart's platform for delivery drivers. The company allegedly told drivers that they would be fired if they did not want to use the Branch accounts and misled drivers about when they could access their earnings. When drivers did use the platform, they allegedly faced numerous delays or fees if they needed to transfer the money into a different account, which resulted in more than $10 million in'junk fees.' The CFPB also accused Branch of failing to investigate alleged errors, failing to provide certain disclosures, failing to maintain records, failing to follow through on stop payment requests and illegally requiring consumers to waive their rights under the law
Walmart Branch Messenger Delivery Drivers Financial Accounts Consumer Protection
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