In December 2024, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart Inc. and Branch Messenger, alleging unlawful practices related to the payment of Walmart Spark delivery drivers. The CFPB accuses Walmart and Branch of illegally opening deposit accounts for over one million drivers without their informed consent and requiring drivers to use these accounts to receive their wages.
Walmart Branch Accounts Lawsuit
The lawsuit claims Walmart and Branch systematically forced drivers to open and use Branch accounts by depositing wages only into these accounts, threatening termination if drivers refused to comply. Contrary to promises of instant access, many drivers experienced complex procedures, delays, and fees in transferring their earnings to personal bank accounts. The CFPB reported that drivers collectively paid more than $10 million in “junk fees” for transferring funds.
Branch, a fintech company offering digital deposit accounts via a mobile app and debit card linked with Evolve Bank & Trust, is also accused of multiple violations including failure to provide required disclosures, mishandling errors and stop payment requests, and forcing consumers to waive their rights under federal laws such as the Electronic Fund Transfer Act and Truth in Savings Act.
The lawsuit demands Walmart and Branch cease these deceptive practices, provide consumer relief, and pay civil money penalties.
Company Responses and Case Outcome
Walmart denounced the allegations as “riddled with factual inaccuracies,” claiming the CFPB conducted a rushed investigation without due process. Branch Messenger also disputed the claims, defending the value and legality of its payment platform.
Despite the severity of the allegations, the CFPB voluntarily dismissed the lawsuit with prejudice in May 2025, effectively closing the case. The dismissal leaves open continued regulatory and public scrutiny of payment practices in gig economy platforms.
Implications for Gig Workers and Fintech Industry
This lawsuit highlighted significant concerns about financial exploitation of gig workers mandated to use costly fintech payment products, raising awareness about fee transparency, wage access, and workers’ rights.
The case also underscores the need for regulatory frameworks that balance innovation in digital payments with protections against predatory fees and forced account usage.
Conclusion
The Walmart Branch accounts lawsuit serves as a landmark examination of payment systems in the gig economy, revealing critical issues between labor, technology, and consumer finance. Although dismissed, it sparked important dialogues on safeguarding gig workers’ earnings and ensuring fair practices in emerging fintech solutions.
