CFPB Sues Walmart and Branch Messenger


CFPB Sues Walmart and Branch Messenger Over Exploitation of Gig Workers

By Miami News-Digest | December 23, 2024

In a landmark legal move, the Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and Branch Messenger, alleging that they exploited delivery drivers in Walmart’s Spark Driver program. According to the CFPB, over a million drivers were forced into unauthorized deposit accounts, leading to more than $10 million in fees.

Local and National Implications

Walmart, headquartered in Bentonville, Arkansas, is a cornerstone of the Midwest economy. This lawsuit has drawn national attention as it raises serious concerns about worker rights and financial exploitation within the gig economy, which has been a hot topic for both local and national news outlets, including USA Today, The Kansas City Star, and The Chicago Tribune.

Allegations Against Walmart and Branch Messenger

  • Unauthorized Accounts: Spark Drivers were forced to use Branch accounts created without their consent.
  • Exorbitant Fees: Drivers incurred over $10 million in junk fees to access their earnings.
  • Misleading Promises: Claims of “instant access” to earnings often resulted in delays and additional costs.

Impact on Midwest Workers

The lawsuit is a wake-up call for gig workers across the Midwest, a region already grappling with employment challenges. If successful, this case could lead to significant changes in how companies like Walmart compensate their delivery drivers, setting a national precedent.

CFPB’s Call for Justice

The CFPB aims to halt these alleged practices, secure restitution for affected workers, and impose civil penalties. This case also marks the first time the CFPB has targeted a fintech partner of Evolve Bank & Trust regarding deposit accounts.

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