A Walmart truck pulls out of a Walmart distribution center in Hurricane, Utah, on May 30, 2024.
George Fry | AFP | Getty Images
The Consumer Financial Protection Bureau filed a complaint Monday against… Walmart and work scheduling platform Branch Messenger for allegedly forcing delivery drivers to use poorly managed and expensive deposit accounts in order to get paid.
“Walmart made false promises, illegally opened accounts, and took advantage of more than 1 million delivery drivers,” CFPB Director Rohit Chopra said in a news release. “Companies cannot force workers to get paid through accounts that drain their profits with insignificant fees.”
The lawsuit alleges that since 2021, Walmart and Branch have opened subaccounts for more than 1 million drivers as part of the Spark Driver Program, Walmart's platform for workers in the gig economy to accept and schedule “last-mile” deliveries, then deposit drivers' wages into these accounts without their consent.
The company allegedly told drivers they would be fired if they did not want to use branch accounts and misled drivers about when they could access their earnings. When drivers used the platform, they allegedly faced numerous delays or fees if they needed to transfer money to a different account, resulting in more than $10 million in “unwanted fees.”
The CFPB also accused Branch of failing to investigate alleged errors, failing to provide certain disclosures, failing to keep records, failing to follow through on stop payment requests, and unlawfully requiring consumers to waive their rights under the law.
The lawsuit is the latest in a series of actions the CFPB has taken against companies for mishandling consumers' and workers' financial accounts. The office previously sued Comerica Bank over allegations that it failed to administer the federal benefits program and charged illegal fees on prepaid debit cards.
Recently, the CFPB filed a complaint against payments network operator Zelle — as well as JPMorgan Chase, Bank of America, and Wells Fargo — alleging that the companies failed to properly investigate fraud complaints or compensate victims. The lawsuit claims customers have lost more than $870 million since Zelle launched in 2017.
Representatives for Walmart and Branch Messenger did not immediately respond to a request for comment from CNBC.
