The media reported that Walmart sued Capital One with a demand to terminate a 4-year partnership with credit cards.
Source: motionarray.com
The retail giant has initiated a lawsuit based on claims against a financial institution about an inadequate level of customer service. The retailer accuses the bank of non-compliance with officially declared standards for providing services to consumers.
The retail giant and the financial institution established a partnership in 2018. As part of the cooperation process, Capital One became the exclusive issuer of the Walmart credit card and the co-branded credit card program in the United States.
Walmart’s lawyers, in a lawsuit filed in Manhattan federal court, claim that the bank failed to provide the level of customer service quality provided for by the contract. The lawsuit alleges that the financial institution failed to properly organize the process of providing services in a number of critical categories. Detailing the charges, the lawyers point out that the bank did not publish information on operations on the accounts of cardholders in time and did not provide replacement cards for five days.
A representative of Capital One, commenting on the Walmart lawsuit, described the retailer’s actions as an attempt to negotiate an existing partnership or prematurely terminate the interaction. He also stated that the maintenance problems were not significant and had already been eliminated. Separately, the representative of the bank noted that these shortcomings did not result to harm to anyone.
An employee of Capital One announced the intention of the financial institution to actively defend its rights in court and the bank’s disagreement with the fact that Walmart has the right to change the terms of the existing midstream partnership.
Walmart has other credit card deals. For example, holders of American Express platinum cards can get a free membership in Walmart+. When Amex members debit their monthly Walmart+ membership from these cards, they receive a statement credit that covers a $12.95 fee.
In the US, approximately 20% of all adult consumers have a Walmart+ membership. The retailer also attracts a certain proportion of buyers with an income of more than 100 thousand dollars and young consumers, which corresponds to the profile of Amex.
As we have reported earlier, Walmart Debuts Website and App Redesign for Optimized Omnichannel Experiences.
