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.