The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and fintech company Branch Messenger, accusing them of forcing over a million delivery workers to use expensive deposit accounts to access their pay. According to the CFPB’s complaint, Walmart and Branch opened deposit accounts for Spark Drivers—Walmart’s independent contractors—using their personal information, including Social Security numbers, without permission.
The lawsuit claims that Walmart drivers, who transport packages from the company’s warehouses to customers, could only have their pay deposited into these Branch accounts. Since 2021, Walmart allegedly told workers that refusing to use these accounts could result in job loss. The complaint also states that accessing wages through these accounts was a “complex process,” often causing delays, despite Walmart’s promises of instant access to pay. Drivers reportedly paid $10 million in “junk fees” to transfer their wages to other bank accounts.
CFPB Director Rohit Chopra condemned Walmart’s actions, saying, “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.” The lawsuit also described the typical Spark Driver as a woman, low-income, with children, and without a college degree.
Walmart has denied the allegations, claiming the CFPB’s lawsuit is filled with factual errors and exaggerations. In a statement, Walmart criticized the rushed investigation and said it had not been given a fair opportunity to present its case. Branch Messenger also rejected the claims, accusing the CFPB of filing the lawsuit for media attention rather than protecting workers.
This case is part of a broader movement to improve protections for gig workers, often classified as independent contractors by companies like Walmart. The outcome could be influenced by the appointment of a new CFPB director under President-elect Donald Trump.
