Walmart Sued by CFPB for Illegal Bank Account Practices Targeting Delivery Drivers

Walmart Sued by CFPB for Illegal Bank Account Practices Targeting Delivery Drivers

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against retail giant Walmart and its payroll service provider, Branch Messenger, alleging a pattern of illegal and deceptive practices related to payment processing for gig workers. The lawsuit centers around Walmart's requirement that Spark delivery drivers receive their wages through Branch accounts, which the CFPB claims were often opened without the drivers' consent or authorization. Key Allegations: Unauthorized Account Openings: The CFPB alleges that Walmart utilized Spark drivers' Social Security numbers to open direct deposit accounts with Branch Messenger without their explicit consent. This practice raises serious concerns about data privacy and security. Excessive Fees: The lawsuit highlights that Branch accounts can incur substantial fees, typically 2% of the transaction amount or $2.99, whichever is higher. These fees can significantly impact drivers' earnings, especially for low-wage workers…