Walmart and Branch Messenger: Beyond the Law

The US Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Walmart and fintech company Branch Messenger. According to the lawsuit, these companies allegedly forced more than a million delivery drivers to use costly escrow accounts to access their payouts. The move drew strong criticism because it appeared that the process of obtaining a paycheck was complicated and workers were subjected to unfair fees.

According to the lawsuit filed on December 23, 2024, Walmart $WMT and Branch Messenger opened escrow accounts for Walmart drivers who are considered independent contractors. These accounts were set up without the workers' consent and linked to their personal information, including their Social Security numbers, without their knowledge. Spark drivers who deliver packages from Walmart could only have their paychecks in these accounts.

According to the lawsuit, the entire situation was complicated by the fact that workers could only access their paychecks after "complex"…