Walmart Accused of Opening Unauthorized Bank Accounts for Over 1 Million Drivers, CFPB Says

The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and fintech company Branch Messenger on Monday, accusing them of forcing more than a million Walmart delivery drivers to use costly deposit accounts to access their paychecks.

According to the CFPB, Walmart and Branch Messenger opened bank accounts for the company’s Spark Drivers using personal information such as Social Security numbers, without their consent. The drivers, who are classified as independent contractors, were allegedly required to have their pay deposited exclusively into accounts with Branch Messenger. The lawsuit claims that Walmart told drivers they could risk losing their jobs if they did not comply, starting in 2021.

The complaint also highlights issues with accessing earnings, describing the process as “complex” and at times resulting in delays of several weeks. Additionally, the drivers reportedly paid over $10 million in “junk fees” to transfer their earnings into other bank accounts.

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

The lawsuit claims that many Spark Drivers are low-income women with children and without college degrees, who are particularly vulnerable to these practices.

In response, Walmart denied the accusations, stating the CFPB’s lawsuit contained factual errors and that the company would vigorously defend itself in court. “We look forward to vigorously defending the Company before a court that, unlike the CFPB, honors the due process of law,” Walmart said in a statement.

Branch Messenger also denied the allegations, claiming that it provides “quick and easy access to funds.” The company further accused the CFPB of rushing to file the lawsuit without engaging in meaningful discussions during the investigation, arguing that the case was more about media attention than protecting workers.

This lawsuit adds to the growing calls for more protections for gig workers, who often lack traditional employee benefits. It also comes shortly after the CFPB filed lawsuits against major banks over fraud issues related to the Zelle payment app.

The outcome of this case may depend on future leadership at the CFPB, with President-elect Donald Trump’s choice for the next director expected to play a significant role in how the agency moves forward.