CFPB Files Lawsuit Against Walmart and Branch Over Alleged Payment Violations for Gig Drivers

Politics

1 year ago

News sources:

Credited from: APNEWS

The Consumer Financial Protection Bureau (CFPB) has initiated legal action against Walmart and Branch Messenger for violating payment practices involving gig drivers.
According to the CFPB, for about two years beginning in 2021, the companies allegedly compelled delivery drivers in Walmart's Spark program to use specific deposit accounts to receive their earnings.
This policy reportedly affected 1 million drivers, leading to misleading information concerning access to same-day wages and subsequent fees.
The CFPB claims these practices resulted in drivers incurring over $10 million in fees, damaging their earnings.
Walmart has rejected the lawsuit as "rushed" and erroneous, asserting a violation of their right to due process, while Branch disputes the CFPB's claims as exaggerated.

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