The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and finance company Branch Messenger, alleging that they forced delivery drivers to pay excessive fees for deposit accounts. The lawsuit claims that Walmart made false promises and used workers’ personal information without consent.
According to the CFPB, over $10 million in junk fees were collected through Walmart’s Spark Driver program between 2021 and 2023. The agency argues that Walmart told drivers they must use Branch Accounts, which it labeled as “costly and risky,” or face job loss.
The lawsuit also claims that Walmart deceived workers about when they would receive their pay, promising instant access even though many employees experienced delays or paid fees to transfer funds to other accounts. The CFPB Director, Rohit Chopra, stated that Walmart made false promises, opened accounts without consent, and took advantage of over 1 million delivery drivers.
Walmart has denied the allegations, stating that the lawsuit contains inaccuracies and exaggerations. A company spokesperson accused the CFPB of never allowing a fair opportunity to present its case. Branch Messenger cooperated with the investigation and strongly disputes the allegations, calling them “misstatements of settled principles of law” and claiming it was unfairly misrepresented in the press release.
The case highlights concerns over the exploitation of vulnerable workers and the need for clearer regulations surrounding financial services.
Source: https://finance.yahoo.com/news/walmart-accused-illegally-forcing-over-165308031.html