Welcome to the Top 3 Innovating Payments news headlines for the week of Jan. 6. In this issue, the Consumer Financial Protection Bureau (CFPB) is taking legal action against Walmart and the financial technology firm Branch Messenger. The CFPB alleges that these companies forced Walmart's delivery drivers to use specific deposit accounts to receive their pay and misled workers about accessing their earnings.
In other news, the Office of the Comptroller of the Currency (OCC) is intensifying its scrutiny of larger financial institutions (FI). Meanwhile, the Federal Trade Commission (FTC) is focusing more on subscription services, as demonstrated by its recent lawsuit against the fintech Dave for deceptive practices in this area.
Read on to learn more.
Walmart Forced Delivery Workers to Pay 'Junk Fees,' CFPB Alleges (Payments Dive)
The Consumer Financial Protection Bureau is suing Walmart and financial technology firm Branch Messenger, alleging they forced the retailer's delivery drivers to use specific deposit accounts to get paid and misled the workers with respect to how they could access their earnings, according to a Dec. 23, 2024 press release. The CFPB claims this led to workers paying more than $10 million in fees to transfer their earnings to an account of their choice. (Read more.)
OCC Poised to Ramp Up Scrutiny on Larger Banks (PYMNTS)
Moving into the new year, headlines swirled around bank stress tests and rulemaking from the Federal Reserve. And while much attention has been paid to the role of the central bank in the coming years, and the Consumer Financial Protection Bureau's (CFPB) own rulemaking touching on everything from credit card late fees to BNPL, the Office of the Comptroller of the Currency (OCC) looks poised to impact banking as well, particularly for larger financial institutions (FIs). (Read more.)
The FTC Takes Aim at Subscription Charges (Payments Journal)
The Justice Department and the Federal Trade Commission's suit against the fintech Dave, filed earlier this week, is the latest in a series of enforcement actions under the Restore Online Shoppers' Confidence Act (ROSCA). This law has been used to target several organizations over the past year that were accused of extracting unwarranted payments and violating subscribers' rights. Passed in 2010, ROSCA forbids any third-party seller from charging a consumer for goods or services sold online without the express consent of the shopper. (Read more.)
What are your thoughts about the CFPB suing Walmart over allegedly forcing delivery workers to pay "junk fees?" How might the Office of the Comptroller of the Currency's (OCC) increased scrutiny of financial institutions, especially larger ones, affect your financial institution? The Federal Trade Commission (FTC) is increasingly focusing on subscription charges and deceptive practices related to online transactions, including its recent lawsuit against the fintech company Dave as part of this broader effort. What implications does this have for financial institutions?
Check back soon for our next issue, highlighting the industry's most pressing and important developments. Until then, visit us online at Innovating Payments.
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AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.
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