Walmart Sues Capital One to End Credit Card Partnership Early, Do It Now
Author: Rakes
Walmart is suing Capital One over allegations that the bank failed to meet customer service standards for their credit card program in the United States.
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The lawsuit was filed in the United States District Court for the Southern District of New York on Friday, seeking to terminate the deal worth over a billion dollars that was signed in 2018.
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Capital One is the exclusive issuer of Walmart's private label and co-branded credit card program in the US.
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Walmart claims that Capital One did not meet its retail partner's customer care standards in at least five critical service areas during a 12-month rolling period.
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Capital One, however, disputed Walmart's allegations and stated that it has cured the servicing issues without any harm to customers, the program, or Walmart.
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A Capital One spokesperson said that Walmart does not have the right to change the terms of the existing partnership mid-stream, and they will protect their contractual rights in court.
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Walmart has not yet made any public statements on the issue.
This is not the first time that Walmart has been involved in a legal battle with a credit card company.
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In 2019, Walmart filed a lawsuit against Visa, alleging that the credit card company was charging the retailer excessively high fees for accepting debit and credit card payments.
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The lawsuit against Visa was settled out of court in 2020, with Walmart agreeing to drop the lawsuit in exchange for undisclosed terms.
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The outcome of the lawsuit against Capital One remains to be seen, and it is unclear how this will impact the retailer's credit card program.
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This legal battle highlights the importance of customer service standards and the consequences of failing to meet them in business partnerships.