The CFPB accused the companies of forcing drivers in Walmart’s Spark Driver program to use these accounts. They demand to get paid with termination as the alternative, in a case filed Monday in a federal court in Minnesota.
According to Bloomberg, the US Consumer Financial Protection Bureau (CFPB) is accusing Walmart Inc. and its financial technology partner, Branch Messenger Inc., of opening expensive bank accounts for delivery workers without their permission.
According to the story, the CFPB accused the firms of forcing drivers in Walmart’s Spark Driver program to use these accounts in order to get paid, with termination as a consequence, in a lawsuit filed Monday in a federal court in Minnesota.
CFPB Director Rohit Chopra said regarding the lawsuit
“Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers,”
Branch Messenger also denied all kinds of allegations,
“stands behind its model and services and will defend this action vigorously.”
According to Bloomberg, Walmart pledged to fight the lawsuit, calling the CFPB’s probe “hurried” and the complaint “riddled with factual errors.”
Walmart allegedly forced delivery drivers to use accounts offered by Branch Messenger, which collaborates with Evolve Bank & Trust to offer debit card and deposit account services, according to the CFPB. The newspaper address, this financial arrangement has come under examination because of Evolve’s previous relationship with Synapse Financial Technologies Inc. This is a fintech that filed for bankruptcy earlier this year.
