Walmart Illegally Opened Bank Accounts For 1 Million Drivers: CFPB

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and fintech company Branch Messenger, accusing them of forcing over a million delivery workers to use unauthorized and costly deposit accounts to access their pay, Ramishah Maruf and Jeanne Shahadi reported for CNN.

Walmart allegedly threatened workers with job termination if they refused to use the accounts opened supposedly without their consent. I Photo: Random Retail Flickr

The CFPB alleges that Walmart and Branch opened deposit accounts for drivers using personal information, such as Social Security numbers, without their consent.

Walmart's Spark Drivers, classified as independent contractors, could only receive pay through these Branch accounts. The complaint further claims that since 2021, Walmart threatened workers with job termination if they refused to use the accounts.

Drivers faced delays of up to weeks when attempting to access their pay, despite promises of instant availability, and collectively paid $10 million in fees to transfer funds to other accounts.

“Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees,” said CFPB Director Rohit Chopra.

The lawsuit describes the typical Spark Driver as a low-income woman with children and no college degree, emphasizing the financial strain caused by these practices.