A federal lawsuit alleges Walmart deceived over a million delivery drivers by creating deposit accounts without their consent, using their Social Security numbers and personal information. Drivers were allegedly pressured to use Branch accounts to receive pay, facing job loss if they refused. The lawsuit claims drivers often lost access to their wages deposited into these accounts due to the complexity of transferring funds.
Walmart delivery drivers were pushed to use illegally opened payments accounts, a federal lawsuit alleges. A federal lawsuit alleges that Walmart deceived more than a million delivery drivers by creating deposit accounts without their knowledge or consent, using their social security numbers and other personal information. On Monday, the lawsuit accused Walmart and payments platform Branch Messenger .
The lawsuit says Walmart told drivers, who deliver its shipments to customers' homes, that they would lose their jobs if they didn't use Branch accounts to receive the pay. 'Thousands' of drivers had their wages deposited into a Branch account before ever agreeing to terms and conditions, according to the lawsuit. Drivers who didn't want to — or couldn't figure out how to — access their Branch accounts, the lawsuit says, would lose their Walmart delivery work and often the wages that had been deposited to those Branch accounts, too. Despite Walmart telling drivers that they could access their earnings instantly, the lawsuit also describes a complex process drivers had to follow to transfer their wages to their usual bank accounts. The 'instant' transfer option required a fee that over the years amounted to more than $10 million paid to Branch, the lawsuit says. Other options would take several days, and both options had daily and monthly limits on how much a driver could transfer. Walmart did not respond to a request for comment. Its 'Spark Driver' delivery program launched in 2018, and the lawsuit's allegations are since 2021., as well as Bank of America, JPMorgan Chase and Wells Fargo for failing to protect consumers from widespread fraud' at the payment provider
Walmart Delivery Drivers Fraud Branch Messenger Payment Accounts
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Walmart and Branch Sued for Allegedly Forcing Delivery Drivers to Use Costly AccountsThe 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'.
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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'.
Read more »