Walmart Sued For Illegally Opening Bank Accounts


The Consumer Financial Protection Bureau is suing Walmart and fintech company Branch Messenger for allegedly forcing more than a million delivery workers to use expensive deposit accounts to access their paychecks.

“The companies opened deposit accounts for Walmart’s drivers with their personal information, such as Social Security numbers, without authorization, according to the agency’s complaint,” per CNN Business

Walmart’s Spark Drivers, who the company classes as independent contractors who bring packages from the company’s warehouses to customers’ doorsteps, could only have their pay deposited into the branch accounts, the complaint says. 

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“Drivers were made to undergo a complex process to receive their pay, with further delays or fees if they wanted to transfer the money into another account,” according to Progressive Grocer. 

Walmart told workers that they could lose their jobs for not using the accounts, according to the lawsuit. The delivery drivers collectively paid more than $10 million in fees to transfer their earnings into accounts of their choosing.

“Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees," CFPB Director Rohit Chopra said in a statement, according to Reuters

Both Walmart and Branch vowed a vigorous defense, according to CBS MoneyWatch.

“The CFPB's rushed lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law. The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation," the retailing giant said in a statement emailed to CBS MoneyWatch.

The CFPB has pursued enforcement and regulatory activity in the final days of President Joe Biden's administration, including a separate lawsuit against JPMorgan Chase, Bank of America and Wells Fargo over their handling of the payments platform Zelle, according to Reuters. 

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