A Walmart truck leaves a Walmart distribution center in Hurricane, Utah, on May 30, 2024.
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The Consumer Financial Protection Bureau filed the complaint on Monday. walmart Branch Messenger, a work schedule management platform, is suspected of forcing delivery drivers to use poorly managed and expensive savings accounts to receive payments.
“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 workers to receive their wages through accounts that siphon off profits with junk fees.”
Starting in 2021, Walmart and Branch will offer branch services for more than 1 million drivers as part of the Spark Driver Program, Walmart’s platform for gig economy workers to accept and schedule “last mile” deliveries, according to the complaint. He claims to have opened an account and deposited the driver’s salary. Delete these accounts without your consent.
The company allegedly told drivers that if they didn’t want to use their branch accounts, they would be fired, and misled drivers about when they would be able to access their earnings. When drivers did use the platform, they reportedly encountered multiple delays and fees when they needed to transfer money to another account, resulting in more than $10 million in “junk fees.” I am.
The CFPB also found that the Branch failed to investigate suspected errors, failed to make certain disclosures, failed to maintain records, failed to honor stop payment requests, and to waive consumers’ rights under the law. He accused the government of making illegal demands.
This lawsuit is the latest in a number of actions the CFPB has taken against companies for mishandling the financial accounts of consumers and workers. The bureau previously sued Comerica Bank, alleging that the bank mismanaged federal benefit programs and charged illegal fees on prepaid debit cards.
Most recently, the CFPB accused the operators of the Zelle payment network and JPMorgan Chase, Bank of America, and Wells Fargo of failing to properly investigate fraud complaints and exposing victims to A complaint was filed for failing to provide compensation. The lawsuit alleges that customers have lost more than $870 million since Zelle launched in 2017.
“Branch strongly opposes the lawsuit filed by the CFPB today,” a representative for Branch said in a statement to CNBC. “The lawsuit contains misrepresentations of law and fact, and is an intentional attempt to cover up the agency’s clear overreach.” It contains significant omissions.”
A Walmart representative did not immediately respond to a request for comment from CNBC.
