The Consumer Financial Protection Bureau has filed a lawsuit against Walmart and a financial technology firm, Branch Messenger, alleging that they illegally forced drivers in Walmart’s Spark Driver gig-work platform to use costly deposit accounts to receive their pay. The CFPB claims that Walmart and Branch Messenger misled drivers about same-day access to earnings and subjected them to fees when transferring funds. Walmart denies the allegations, stating that the CFPB’s suit is full of factual errors. Branch Messenger also refutes the claims, accusing the CFPB of overreach. The CFPB has been active in filing suits and announcing rules as the Biden administration nears its end, facing uncertainty about the agency’s future with the incoming Republican-controlled government. Lawsuits were filed against banks, including Comerica Bank, for alleged consumer harm and failure to prevent fraud on the Zelle platform. The banking industry and Zelle’s operator have denied the charges. The CFPB also introduced rules, including one limiting bank overdraft fees, that faced immediate challenges from the banking industry. As Republicans signal plans to weaken the agency, concerns about its future persist, with influential figures advocating for its elimination.
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Lawsuit filed against Walmart and fintech firm by Consumer Protection Board over gig-worker driver pay access
