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US government sues Walmart, Branch Messenger over delivery driver 'junk fees'
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US government sues Walmart, Branch Messenger over delivery driver 'junk fees'
Dec 23, 2024 7:36 AM

WASHINGTON, Dec 23 (Reuters) - The U.S. consumer finance

watchdog accused Walmart ( WMT ) and the workforce payments

company Branch Messenger on Monday of forcing more than a

million delivery drivers into using accounts that cost them more

than $10 million in junk fees.

The Consumer Financial Protection Bureau said in a lawsuit

that Walmart ( WMT ) had told "last mile" drivers in its Spark Driver

program it would fire them unless they collected their pay in

Branch accounts opened without their consent, the agency said.

"Companies cannot force workers into getting paid through

accounts that drain their earnings with junk fees," CFPB

Director Rohit Chopra said in a statement.

Representatives for Walmart ( WMT ) and Branch Messenger did not

immediately respond to requests for comment.

The CFPB has pursued enforcement and regulatory activity in

the final days of President Joe Biden's administration,

announcing a lawsuit on Friday against JPMorgan Chase ( JPM ),

Bank of America ( BAC ) and Wells Fargo ( WFC ) over their

handling of the payments platform Zelle.

Monday's announcement said the agency was seeking to end the

conduct in question, to return funds to harmed consumers and

impose fines to be paid into the CFPB's victim relief fund.

The suit alleges Walmart ( WMT ) and Branch incorrectly told drivers

they would have instant access to their wages when in reality

they experienced delays or faced fees in transferring their

funds elsewhere. It says Branch also deceived drivers about

their ability to stop payments or make certain transfers.

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