Walmart and Branch Messenger Sued for Junk Fees

WASHINGTON (Reuters) – The U.S. consumer finance watchdog accused Walmart (NYSE:WMT) and workforce payments company Branch Messenger on Monday of forcing over a million delivery drivers to use accounts incurring more than $10 million in junk fees.

The Consumer Financial Protection Bureau (CFPB) filed a lawsuit stating that Walmart pressured "last mile" drivers in its Spark Driver program, threatening termination unless they collected their pay through Branch accounts, which were opened without consent.

CFPB Director Rohit Chopra emphasized, "Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees."

Walmart and Branch Messenger did not respond immediately to requests for comment.

Throughout the final days of President Joe Biden's administration, the CFPB has actively pursued regulatory actions, including a recent lawsuit against JPMorgan Chase (NYSE:JPM), Bank of America, and Wells Fargo (NYSE:WFC) regarding their Zelle payment platform.

The CFPB aims to halt the alleged misconduct, return funds to affected consumers, and impose penalties into the CFPB's victim relief fund. The lawsuit claims Walmart and Branch misled drivers about immediate access to wages, while they actually faced delays and fees for fund transfers. Additionally, it alleges Branch misinformed drivers regarding their ability to halt payments or make specific transfers.