Both Walmart and FinTech companies branch said on Monday (December 23) that they will “vigorously” defend themselves against a Consumer Financial Protection Bureau (CFPB) filed suit against the companies.

The CFPB sued Branch and Walmart on Monday, alleging that the companies illegally opened accounts for gig economy delivery drivers without their consent, required drivers to receive their pay through those accounts, collected junk fees from the drivers and the “Instant access” not provided. to pay what they had promised.

The CFPBs Complaint At the center is Walmart Spark driver The program includes gig economy drivers who make last-mile deliveries from Walmart stores and Branch’s deposit account, which can be accessed through a digital app and debit card, the CFPB said Monday Press release.

“Walmart made false promises, illegally opened accounts and exploited more than a million delivery drivers,” CFPB Director said Rohit Chopra said in the press release. “Companies cannot force workers to be paid through accounts that add junk fees to their income.”

When contacted by PYMNTS, Walmart said in an email statement that it looks forward to defending itself in court.

“The CFPB’s hasty lawsuit is riddled with factual errors and contains exaggerations and blatant misrepresentations of established legal principles,” the statement said. “The CFPB never gave Walmart a fair opportunity to state its case during its rushed investigation. We look forward to vigorously defending the company in a court that, unlike the CFPB, respects due process.”

Branch said in a statement emailed to PYMNTS that the CFPB’s lawsuit misrepresents the law and facts and ignores the quick and easy access to funds that Branch provides to Walmart and drivers.

The company added that it stands behind its model and services and that it will “vigorously defend this action.”

“Despite the company’s full cooperation in its investigation, the CFPB refused to cooperate with Branch in any meaningful way on this matter and instead hastily filed a lawsuit,” the statement said. “This approach makes it clear that this litigation has nothing to do with the law or worker protections, but rather with the media attention that litigation against one of the largest retailers in the world attracts.”

The CFPB said in the release that its lawsuit seeks to stop the companies’ unlawful conduct, provide redress to harmed consumers and impose a civil monetary penalty that will be deposited into the regulator’s victim assistance fund.

Spark Driver, a loosely organized network of freelance drivers Whoever uses an app developed by Walmart to process deliveries plays a crucial role in Walmart’s competitiveness Amazon deliveries, PYMNTS reported in November.

Companies want to make their payments as quickly as possible because individuals are prepared Ecommerce You can expect instant satisfaction, Branch Manager Finance Brian Whalen said PYMNTS in an interview published in June 2023.

“The trend in business is definitely to get everyone paid as quickly as possible,” Whalen said in an interview for the PYMNTS Intelligence report.Accounts Payable Payments: Solving Common Business Challenges“The companies that move faster in this direction have also created a real competitive advantage.”