Consumer Watchdog Cracks Down on Walmart and Branch Messenger
Forcing Drivers into Costly Accounts
The Consumer Financial Protection Bureau (CFPB) has taken aim at retail giant Walmart and workforce payments company Branch Messenger, accusing them of strong-arming over a million delivery drivers into using accounts that have drained their earnings by more than $10 million in unnecessary fees.
Coercive Practices Alleged
According to the CFPB’s lawsuit, Walmart threatened to terminate its “last mile” drivers in the Spark Driver program unless they agreed to receive their pay through Branch accounts opened without their consent. This coercive tactic has resulted in drivers being charged exorbitant fees, further reducing their already meager earnings.
Protecting Workers’ Rights
CFPB Director Rohit Chopra emphasized that companies cannot dictate how workers receive their pay, especially when it comes to accounts that siphon off their hard-earned wages. “Workers deserve to be treated fairly and have control over their own earnings,” Chopra stated.
Seeking Justice for Harmed Consumers
The CFPB is seeking to put an end to these unfair practices, refund the affected drivers, and impose fines that will be channeled into the agency’s victim relief fund. This lawsuit is part of the CFPB’s ongoing efforts to hold companies accountable for their actions, particularly in the final days of the current administration.
Deceptive Practices Uncovered
The lawsuit alleges that Walmart and Branch misled drivers about their ability to access their wages instantly, when in reality, they faced delays and fees when trying to transfer their funds to other accounts. Furthermore, Branch is accused of deceiving drivers about their ability to stop payments or make certain transfers.
A Pattern of Enforcement
This lawsuit follows closely on the heels of another enforcement action taken by the CFPB against JPMorgan Chase, Bank of America, and Wells Fargo over their handling of the payments platform Zelle. As the agency continues to crack down on unfair practices, consumers can expect greater protections and more accountability from companies.
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