Imagine waking up to find a new bank account in your name that you never asked for. Now imagine your hard-earned paycheck is already sitting in it, but you can’t touch the cash without jumping through hoops or paying a fee. Honestly, it sounds like a bad phishing scam. But according to the federal government, this was just a Tuesday for over a million delivery drivers.
In late December 2024, the Consumer Financial Protection Bureau (CFPB) dropped a legal bombshell. They officially announced that Walmart sued for opening bank accounts for drivers without authorization, alongside a fintech partner called Branch Messenger.
The details are kinda messy. We’re talking about more than a million "last-mile" delivery workers in the Spark Driver program. These are the folks who bring groceries and packages from Walmart warehouses straight to your porch. According to the lawsuit, Walmart and Branch basically harvested the personal data—Social Security numbers and all—of these drivers to spin up accounts at Evolve Bank & Trust without getting a "yes" from the actual humans involved.
🔗 Read more: The Stephen Miran Mar-a-Lago Accord: Why Your Wallet Might Feel the Shaking Next
The $10 Million "Junk Fee" Problem
The CFPB isn’t just annoyed about the paperwork. They’re alleging a massive bait-and-switch.
Basically, Walmart told these Spark drivers that the only way to get paid was through a Branch account. No Branch? No job. The lawsuit claims Walmart threatened workers with termination if they didn't play ball.
Once the money landed in these unauthorized accounts, the "instant access" promised by the marketing turned out to be a bit of a mirage. Drivers found themselves stuck in a labyrinth. To get their money out and into their real bank accounts (the ones they actually use to pay rent), they often had to pay "junk fees."
How much are we talking? Over $10 million in total transfer fees since 2021.
CFPB Director Rohit Chopra didn't hold back. He stated that companies simply cannot force workers into payment systems that drain their earnings through hidden costs. It's a pretty bold stance against the "company store" vibe that some gig platforms have been leaning into lately.
What Walmart and Branch Are Saying
You’ve probably guessed that Walmart isn't just taking this lying down. They’ve called the lawsuit "rushed" and "riddled with factual errors."
In a statement that sounds like it was written by a very caffeinated legal team, Walmart argued that the CFPB didn't give them a fair shake to explain their side before filing. They’re vowing to fight it in court, claiming the bureau is exaggerating and misstating the law.
Branch Messenger is on the same page. They claimed the lawsuit is more about grabbing headlines than actually protecting workers. They insist their platform was built for convenience—giving gig workers faster access to funds than traditional banking—and that the CFPB is "masking clear overreach."
🔗 Read more: The Real Reason Why Remote Work Productivity Data Is So Messy
Why This Matters for the Rest of Us
This isn't just a spat between a giant retailer and a government agency. It highlights a massive shift in how we get paid.
- The Gig Economy Trap: Many independent contractors lack the labor protections that full-time employees have. If a platform says "use this app or you're fired," a driver doesn't have much leverage.
- Privacy Concerns: The idea that a company can use your SSN to open a financial product without your explicit consent is a huge red flag for identity security.
- Financial Gatekeeping: When your employer also controls the "bank" where your money is held, the line between "convenience" and "coercion" gets very blurry.
The CFPB is also accusing Branch of some other shady stuff, like failing to investigate errors or honor stop-payment requests. It’s a laundry list of regulatory "no-nos" that could set a massive precedent for how fintech companies partner with retailers in the future.
What Should Spark Drivers Do Now?
If you're a driver who feels like you were caught in this loop, you aren't totally powerless.
First, keep your records. Every fee you paid to move money out of a Branch account is potentially part of a future settlement. Second, watch for news on mass arbitration. There are already law firms looking into whether Spark drivers were misclassified as contractors in the first place, which adds another layer to this legal onion.
👉 See also: Status of NY Tax Refund: Why Your Cash Might Be Stuck in Albany
The CFPB is seeking "redress" for the affected drivers. That’s fancy legal talk for getting your money back. While these cases can take years to grind through the court system, the pressure is officially on.
Walmart sued for opening bank accounts for drivers without authorization serves as a wake-up call for the entire gig industry. If the government wins this, the days of forcing workers into high-fee, "proprietary" bank accounts might finally be coming to an end.
Actionable Steps for Gig Workers
- Audit your pay apps: Check the "Terms and Conditions" you may have clicked through in a hurry. Look for transfer fees or "instant pay" costs.
- File a complaint: If you feel a company opened a financial account in your name without permission, you can submit a report directly to the CFPB's consumer complaint database.
- Diversify your platforms: Relying on a single gig app that controls your banking is risky. If possible, keep your primary finances in a traditional credit union or bank that isn't tied to your employer.