On May 30, 2024, a Walmart truck drove out of the Walmart distribution center in Hurricane, Utah.
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The Consumer Financial Protection Bureau filed a complaint Monday with the Consumer Financial Protection Bureau Walmart Job placement platform Branch Messenger allegedly forced delivery drivers to use poorly managed and costly deposit accounts 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 press release. “Companies cannot force employees to go through Accounts that drain revenue from junk fees get paid.”
The lawsuit alleges that Walmart and Branch have opened Branch accounts for more than 1 million drivers since 2021 as part of the Spark driver program on Walmart’s platform. gig economy Workers accept and arrange “The last mile” Make deliveries and then have the driver’s paycheck deposited into these accounts without their agree.
The company allegedly told drivers they would be fired if they didn’t want to use branch accounts and misled drivers about when they would receive earnings. When drivers did use the platform, they allegedly faced substantial delays or fees if they needed to transfer money to other accounts, resulting in more than $10 million in “junk fees.”
The CFPB also accused Branch of failing to investigate alleged errors, failing to provide certain disclosures, failing to maintain 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 by the CFPB taken Stand up to companies that mishandle consumers and workers’ financial accounts. The bureau previously sued AlliedSignal, alleging it failed to administer federal benefit programs and charged illegal fees on prepaid debit cards.
The CFPB recently filed complaints against Zelle payment network operators, as well as JPMorgan Chase, Bank of America and Wells Fargo, accusing the companies of failing to properly investigate fraud complaints or provide compensation to victims. The lawsuit alleges that since Zelle launched in 2017, customers have lost more than $870 million.
Representatives for Walmart and Branch Messenger did not immediately respond to CNBC’s requests for comment.
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