CFPB Drops Lawsuit Against Walmart, Branch Messenger Over Spark Driver Accounts
The Consumer Financial Protection Bureau (CFPB) has withdrawn its lawsuit against retail giant Walmart Inc. and messaging app Branch Messenger Inc. The agency, under the leadership of Acting Director Michael J. Hsu, dismissed the case that was initially filed in December 2021 under President Joe Biden's administration.
The lawsuit, initiated under the tenure of former CFPB Director Rohit Chopra, accused Walmart and Branch Messenger of opening costly bank accounts without the consent of participants in Walmart's Spark Driver program. This is one among several enforcement actions abandoned by the Trump administration, including cases against Capital One Financial Corp. and JPMorgan Chase & Co. The CFPB's chief legal officer, Mark Paoletta, oversaw the dismissal of the lawsuit.
The CFPB's decision to drop the lawsuit against Walmart and Branch Messenger comes as part of a broader review of enforcement actions taken under the previous administration. The agency has not provided details on whether this move signals a shift in its approach to consumer protection.
