Categories: Finance and Commerce

US government sues Walmart, Branch Messenger over $10M in delivery driver ‘junk fees’

The U.S. consumer finance watchdog accused Walmart (WMT.N), opens new tab and the workforce payments company Branch Messenger on Monday of forcing more than a million delivery drivers into using accounts that cost them more than $10 million in junk fees.

The Consumer Financial Protection Bureau said in a lawsuit that Walmart had told “last mile” drivers in its Spark Driver program it would fire them unless they collected their pay in Branch accounts opened without their consent, the agency said.

“Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees,” CFPB Director Rohit Chopra said in a statement.

Representatives for Walmart and Branch Messenger both rejected the CFPB’s allegations, accusing the agency of failing to allow them time to offer explanations and of “rushing” to file the lawsuit.

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Greg Smith

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