U.S. consumer financial watchdog indicts Walmart (WMT.N), opens in a new tab Employee payments company Branch Messenger on Monday said it forced more than 1 million delivery drivers to use accounts, resulting in more than $10 million in junk fees.
The Consumer Financial Protection Bureau said in the lawsuit that Walmart told “last mile” drivers in its Spark Driver program that they would be fired if they did not collect their paychecks in branch accounts opened without their consent.
CFPB Director Rohit Chopra said in a statement that “companies cannot force employees to receive paychecks from accounts where their income is siphoned off through junk fees.”
Representatives for Walmart and Branch Messenger both rejected the CFPB's motion, accusing the agency of not giving them time to explain and “rushing” to file the lawsuit.
“Unlike the CFPB, we look forward to vigorously defending the company in a court that respects due process of law,” Walmart said in a statement.
CFPB has pursued enforcement and regulatory activities At the end of President Joe Biden's administration, announce a lawsuit Friday's game against JPMorgan Chase (JPM.N), opens in a new tabBank of America (BAC.N), opens in a new tab and Wells Fargo (WFC.N), opens in a new tab Regarding the handling of payment platform Zelle.
According to Monday's announcement, the agency is seeking to cease the conduct in question, return funds to affected consumers, and impose fines payable to the CFPB's Victim Relief Fund.
According to the lawsuit, Walmart and Branch did not allow drivers to receive their wages immediately, even though there were actual delays and fees to send the funds elsewhere. He claims that he incorrectly told them that he could do so. Branch also said it misled drivers about whether they could stop payments or make certain transfers.
