US government sues Walmart, Branch Messenger over delivery driver 'junk fees'

Source: Reuters, via Yahoo! Finance

US government sues Walmart, Branch Messenger over delivery driver 'junk fees'

Reuters
Updated Mon, December 23, 2024 at 2:09 PM EST 1 min read

WASHINGTON (Reuters) -The U.S. consumer finance watchdog accused Walmart 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.

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(Reporting by David Ljunggren and Douglas Gillison; Editing by Howard Goller and Aurora Ellis)

Read more: https://finance.yahoo.com/news/cfpb-sues-walmart-branch-messenger-140953761.html