The Consumer Financial Protection Bureau has filed a lawsuit against Walmart and fintech company Branch Messenger for allegedly compelling over a million delivery workers to use costly deposit accounts to access their paychecks. The agency claims that the companies opened deposit accounts for Walmart's drivers without authorization, using their personal information like Social Security numbers. These drivers, known as Spark Drivers, were classified as independent contractors by Walmart and were required to have their pay deposited exclusively into the Branch accounts. Failure to comply could result in job loss, as per the lawsuit.
The lawsuit further alleges that accessing their earnings through these accounts involved a complex process, leading to significant delays, despite promises of instant access. Additionally, drivers reportedly paid a total of $10 million in fees to transfer their wages to other bank accounts, which the CFPB deems as 'junk fees.'
