A federal judge issued the following ruling on Tuesday (March 26): walmart be able to terminate the credit card partnership with capital one The early exit came after the bank did not provide the level of service required by the companies’ 2018 agreement.
Judge rules that Walmart can end partnership due to ‘repeated customer service failures’, Reuters report Tuesday (March 26).
When asked for comment by PYMNTS, a Capital One spokesperson issued an emailed statement saying, “We disagree with the court’s decision and are evaluating our right to appeal.”
Under an agreement between the two companies in 2018, Capital One exclusive publisher According to a Reuters report, the percentage of Walmart-branded credit cards in the United States is
According to the report, Walmart accused the bank of being slow to post transactions to cardholders’ accounts and replace lost cards in late 2022 and early 2023.
In a lawsuit that began in April 2023, the retailer could terminate its partnership with Capital One if it fails to meet any of 13 customer service standards at least five times in a 12-month period, according to the report. He claimed that there was. The bank argued that Walmart could only do so if Capital One failed to meet either criteria at least five times.
time lawsuit “Unfortunately, Capital One has consistently failed to meet the customer service standards required by the contract,” Walmart’s lawyers said in the lawsuit.
A Capital One spokesperson told PYMNTS at the time that Walmart’s lawsuit was an attempt to negotiate an existing partnership or prematurely terminate the agreement.
“These non-essential service issues were resolved by Capital One in accordance with the terms of the agreement without harm to the customer, the program or Walmart,” a spokesperson said in April 2023. “Capital One disputes Walmart’s right to change its terms of service” midway through existing partnerships and will aggressively protect its contractual rights in court. ”
A judge ruled Tuesday in favor of Walmart’s view of the terms, saying they were “plain and unambiguous,” Reuters reported.
The judge said the companies have until April 19 to advise the court how to resolve the remaining claims and counterclaims, according to the report.
