WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) recently filed a lawsuit against Walmart and financial technology company Branch Messenger, accusing them of forcing delivery drivers in Walmart’s Spark Driver Program to use specific deposit accounts riddled with fees and delays. The suit alleges that these practices violated federal consumer protection laws and harmed over a million drivers.
According to the CFPB, Walmart and Branch unlawfully opened accounts with Branch for Spark Drivers without their consent and deposited paychecks into these accounts. Drivers were reportedly told they must use these accounts to be paid, facing termination if they refused. Contrary to promises of fast and easy access to earnings, workers experienced delays and were charged fees to transfer their money to other accounts, resulting in over $10 million in combined costs to drivers.
CFPB Director Rohit Chopra stated, “Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers.”
Branch is also accused of violating federal laws by failing to investigate errors, honor stop payment requests, and maintain necessary records. The CFPB alleges that both companies harmed workers by removing their ability to choose how they were paid and by misleading them about their options for accessing earned wages.
This enforcement marks the CFPB’s latest effort to address consumer protection violations in employment. The agency is seeking to stop the alleged unlawful practices, provide financial redress to affected drivers, and impose civil penalties to be paid into its victims relief fund. The case also highlights regulatory scrutiny on fintech partnerships linked to banking operations.
The court’s decision on this case could have wide-reaching implications for gig economy workers and corporate payment practices.
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