The Consumer Financial Protection Bureau (CFPB) sued Walmart and its financial technology partner, Branch Messenger Inc., alleging they opened expensive bank accounts for delivery drivers without their consent. The CFPB claims Walmart pressured drivers in their Spark Driver program to use these accounts or risk losing their jobs. Walmart denies these allegations, while Branch Messenger maintains its services are valuable and intends to defend against the lawsuit vigorously.
The Walmart truck fleet has We're Hiring Drivers signage on the back of the truck on I-88 road in Franklin Grove, Ill., Monday, Oct. 14, 2024. Walmart Inc. and one of its financial technology partners allegedly opened expensive bank accounts for delivery drivers of the world’s largest retailer without their consent, a
The Consumer Financial Protection Bureau sued Walmart and Branch Messenger Inc., claiming they required those in the Spark Driver program to be paid through costly accounts or be fired.“Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,” CFPB Director Rohit Chopra said in a statement after the agency sued the two companies in Minnesota federal court.
The CFPB said Walmart required the delivery drivers to use Branch Messenger, a fintech that offers workers deposit accounts and debit cards through their employers. Branch Messenger partners with Evolve Bank & Trust to offer those accounts. Evolve has been recently scrutinized for its fintech-bank partnerships due to the relationship it had with the firm Synapse Financial Technologies Inc., which went bankrupt earlier this year.
In addition to opening the accounts without consent, the CFPB claims Walmart and Branch Messenger also misrepresented that drivers could instantly access their pay.In its complaint, the agency outlined a complex process for drivers to access their accounts, with weeks of delays before they were able to get to their money. Some never did, the agency said.Among those who did make the connection, the CFPB claimed, drivers had to pay a fee of either 2% of the transferred amount or $2.
Walmart launched its Spark delivery service in 2018 and relies on the third-party drivers to deliver online orders to homes. The retailer said last month that e-commerce sales rose over 20% in the U.S. during the most recent quarter.
Walmart Financial Technology Consumer Protection Bank Accounts Delivery Drivers
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.
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 »
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 »
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.
Read more »