Walmart Sued Over Illegally Opening Bank Accounts For Delivery Drivers

An anonymous reader quotes a report from The Verge: The Consumer Financial Protection Bureau (CFPB) is suing Walmart and payroll service provider Branch Messenger for alleged illegal payment practices for gig workers. The bureau says Walmart was opening direct deposit accounts using Spark delivery drivers' social security numbers without their consent. The accounts also can come with intense fees that, according to the complaint, would add either 2 percent or $2.99 per transaction, whichever is higher. It also says Walmart repeatedly promised to provide drivers with same-day payments through the platform starting in July 2021 but never delivered on that. The Bureau alleges that for approximately two years starting around June 2021, defendants engaged in unfair, abusive, and deceptive practices in violation of the Consumer Financial Protection Act of 2010, including by requiring Spark Drivers to receive their compensation in Branch Accounts, opening Branch Accounts for Spark Drivers without their informed consent or, in many instances, on an unauthorized basis, and making deceptive statements about Branch to Spark Drivers. Spark delivery workers have been complaining about Walmart's Branch Messenger account requirements for years, which forced workers to use these accounts with no option to direct deposit to a preferred credit union or local bank. Walmart allegedly told workers they'd be terminated if they didn't accept the Branch accounts.

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