Walmart Ripped Off Its Own Drivers, Lawsuit Alleges

CFPB says company illegally forced drivers to open bank accounts to get paid
By John Johnson,  Newser Staff
Posted Dec 25, 2024 9:01 AM CST
Walmart Ripped Off Its Own Drivers, Lawsuit Alleges
Shoppers check out at a Walmart store in Centennial, Colo.   (AP Photo/David Zalubowski)

The federal Consumer Financial Protection Bureau has sued Walmart over the way it treats its "Spark Drivers." The lawsuit alleges that Walmart illegally opened bank accounts in the drivers' names by using their personal data—including Social Security numbers—without authorization, reports CNN. The company told the drivers that the only way they could get paid is if they had accounts with the payment platform company Branch Manager, per NPR. Branch Manager also is named in the suit. The problem, according to the feds, is that these accounts charged exorbitant "junk fees" and made it needlessly difficult for the drivers to access their money.

  • "Walmart made false promises, illegally opened accounts, and took advantage of more than a million delivery drivers," says a CFPB release. "Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees."
  • In its lawsuit, the agency describes the typical Spark Driver as "a woman, has children, does not have a college degree, and is low income."
  • Walmart denied the allegations and said it would defend itself in court. "The CFPB's rushed lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law," reads a statement. "The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation."
(More Walmart stories.)

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