Walmart and Branch Messenger Face Allegations

Walmart (NYSE: WMT) and its financial technology partner, Branch Messenger Inc., have been accused by a U.S. consumer protection agency of opening expensive bank accounts for delivery drivers without their consent. The allegations were made on Monday by the Consumer Financial Protection Bureau (CFPB).

According to the CFPB, Walmart and Branch Messenger insisted that delivery drivers receive their payments through these costly accounts. Consequently, the consumer protection agency has filed a lawsuit against both companies in the U.S. District Court for the District of Minnesota.

Rohit Chopra, Director of the CFPB, stated that Walmart allegedly made false promises, opened accounts illegally, and exploited over a million delivery drivers.

As of the time of reporting, neither Walmart nor Branch Messenger has responded to the allegations or the request for comment.

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