The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and Branch Messenger, accusing them of exploiting delivery drivers through deceptive and costly payment practices. The allegations revolve around Walmart’s Spark Driver program, which utilizes gig economy workers for deliveries, and claim that drivers were forced to use specific bank accounts linked to Branch Messenger, incurring over $10 million in junk fees.
The CFPB’s lawsuit states that Walmart required drivers to open Branch accounts for payment processing, often without their consent, and directly deposited earnings into these accounts. Drivers were allegedly threatened with termination if they refused to comply. Furthermore, the companies are accused of misleading workers about the ease of accessing their earnings, resulting in additional fees when drivers transferred funds to their preferred accounts.
CFPB Director Rohit Chopra condemned these practices, asserting that “Walmart made false promises, illegally opened accounts, and exploited over a million delivery drivers.” The lawsuit also accuses Branch of failing to address account errors, disregarding stop payment requests, and neglecting record-keeping obligations.
Both Walmart and Branch Messenger have denied the allegations, criticizing the CFPB for not allowing adequate time to respond before filing the lawsuit. The legal action seeks to end these practices, provide compensation to affected drivers, and impose financial penalties to support victims.
This case represents the CFPB’s ongoing efforts to protect workers, marking its first action against a fintech partner of Evolve Bank & Trust related to deposit accounts. The agency also highlighted prior enforcement actions against Evolve partners for regulatory failures.
