Walmart and Branch Messenger Face Lawsuit Over Alleged Unauthorized Accounts

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against retail giant Walmart and fintech company Branch Messenger, accusing them of illegally opening deposit accounts for over one million delivery drivers without their consent. 

The suit, filed on December 23, 2024, alleges that the companies used drivers' personal information, including Social Security numbers, to create these accounts. According to the CFPB, Walmart's Spark Driver program participants were reportedly forced to use these Branch accounts to receive their pay, with threats of termination for non-compliance. The lawsuit claims that drivers were misled about instant access to their earnings and faced a complex process to retrieve their funds. 

The CFPB alleges that these practices resulted in drivers collectively paying more than $10 million in fees to transfer their earnings to accounts of their choosing. CFPB Director Rohit Chopra stated, "Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers". 

Walmart has denied the allegations, calling the lawsuit "filled with inaccuracies" and vowing to defend itself in court. Branch Messenger also refuted the claims, stating that the CFPB's lawsuit "misrepresents the law and facts".