Walmart accused of illegally forcing more than 1 million drivers to open bank accounts
The Consumer Financial Protection Bureau is suing Walmart and a financial company, saying they force delivery drivers to pay junk fees on “expensive” deposit accounts and use their personal information without their consent.
The federal agency filed suit against the retail company and financial technology company Branch Messenger on December 23. ” to start 2021.
The agency said the two companies “collected more than $10 million in trash fees” through Walmart’s Spark Driver program, which allows people to sign up and have Walmart orders delivered through an app.
The agency argued that Walmart told drivers they had to use branch accounts (which the agency labeled an “expensive and risky product”) or risk losing their jobs.
Federal agencies argue that Walmart and branches also used drivers’ personal data to open deposit accounts without their consent (Getty Images)
“Walmart made false promises, illegally opened accounts, and took advantage of more than 1 million delivery drivers,” CFPB Director Rohit Chopra said in a statement.
The agency further argued that Walmart and Branch “used driver information, including Social Security numbers, to open accounts for new drivers without their consent.”
The companies also deceived employees about when they would receive their funds, promising immediate payments, even though many employees experienced delays or fees when transferring funds to other accounts, the lawsuit alleges.
A Walmart spokesman said the lawsuit contained some inaccuracies and accused the agency of never giving Walmart “a fair opportunity to present its case.”
“The CFPB’s hasty litigation is riddled with factual errors and contains exaggerations and flagrant misstatements of established legal principles,” the spokesperson said. independent in a statement.
“We look forward to vigorously defending the company in court, which, unlike the CFPB, respects due process of law,” the spokesperson added.
A spokesperson said in a statement that Branch is cooperating with the investigation and “strongly disagrees” with the allegations against them. independent.
“The Bureau strongly objects to the CFPB’s lawsuit, which misrepresents the law and facts and includes intentional omissions to conceal the Bureau’s clear overreach,” the spokesperson said. “The Bureau provides valuable services to Walmart and its driver partners. “
The spokesman added: “The branch stands behind its model and service and will vigorously defend this action.”
