U.S. Claims Walmart Opened Unauthorized Accounts for Delivery Drivers

A federal lawsuit has been filed against Walmart, accusing the company of pushing its delivery drivers into using unauthorized payment accounts.

According to the lawsuit, Walmart misled over a million drivers by setting up deposit accounts using their social security numbers and other personal information without their explicit consent.

The Consumer Financial Protection Bureau claims these actions led to drivers incurring over $10 million in unnecessary fees through these accounts.

It is alleged that Walmart warned drivers, who are responsible for home deliveries, that their employment would be at risk if they didn't accept using Branch accounts for their payments. Many had their pay deposited into these Branch accounts before they even acknowledged the terms and conditions.

For drivers unwilling or unable to access their Branch accounts, there was a threat of losing both their Walmart delivery roles and the wages already deposited in those accounts.

Despite Walmart's promises of immediate access to their earnings, drivers reportedly faced a convoluted process to transfer their funds to their regular bank accounts.

An option for 'instant' transfers came with a fee, leading to over $10 million in payments to Branch over the years. Other withdrawal methods took several days and imposed limits on transaction amounts.

Walmart has yet to address the allegations or provide a comment. The company's 'Spark Driver' program began in 2018, while the claims date back to 2021.

This lawsuit follows recent actions by the consumer bureau against major financial institutions like Bank of America and Wells Fargo for failing to safeguard consumers from extensive fraud at the payment provider.