The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and work-scheduling platform Branch Messenger, alleging that they forced millions of delivery drivers to use poorly managed and costly deposit accounts to get paid. The agency claims that since 2021, Walmart and Branch opened deposit accounts for over one million drivers without their consent and charged them excessive fees.
According to the CFPB Director Rohit Chopra, companies cannot force workers into getting paid through accounts that drain their earnings with junk fees. The lawsuit alleges that Walmart and Branch made false promises to drivers, including telling them they would be fired if they didn’t use the platform, and misled them about when they could access their earnings.
The company allegedly imposed numerous delays or fees on drivers who tried to transfer money into a different account, resulting in over $10 million in “junk fees”. Walmart has disputed the agency’s allegations, claiming that the CFPB’s investigation was unfair and riddled with factual errors.
The lawsuit is part of a series of actions by the CFPB against companies for mishandling consumer and worker financial accounts. The agency has previously sued companies over allegations of wage theft, including Comerica Bank and the operator of the Zelle payments network.
Source: https://www.cnbc.com/2024/12/23/us-sues-walmart-branch-messenger-delivery-driver-junk-fees.html