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Update:
- A New York federal judge will allow Walmart to terminate an agreement with Capital One, ruling the contract allows the former to nix the deal if the latter fails to meet certain critical customer service benchmarks.
- In April 2023, Walmart filed a complaint against Capital One, claiming the credit card company was unable to meet the customer service standards detailed in a 2018 contract between the two companies.
- Walmart, in a subsequent motion for partial summary judgment, argued the contract held a termination clause allowing it to end the agreement if Capital One failed to meet its customer service standards five or more times during a 12-month period.
- Capital One, in its own motion for partial summary judgment, unsuccessfully argued theWalmart could only invoke termination clause if it missed the same standard five or more times during a 12-month period.
Walmart Capital One lawsuit overview:
- Who: Walmart has asked a New York federal court to allow it to terminate its contract agreement with its credit card partner Capital One.
- Why: Walmart argues Capital One has been “unable to meet the customer service standards” outlined in a 2018 contract between the two companies.
- Where: Walmart and Capital One are patronized by consumers nationwide.
- What are my options: Consumers looking for alternatives to Walmart may be interested in products from Wish.
(April 27, 2023)
Walmart has asked a federal court in New York to allow it to terminate its agreement with credit card partner Capital One, with the multinational retail corporation arguing the bank has not been able to meet its customers’ needs.
The credit card company is accused of being “unable to meet the customer service standards” outlined in a 2018 contract that required the bank to offer “carefully defined levels of service to Walmart and its customers,” Law360 reports.
Walmart customers in the U.S. have reportedly been issued Walmart-branded Capital One credit cards under the companies’ contract.
The retailer argues it now has the right to terminate that contract, due to Capital One allegedly having “repeatedly failed to meet several of the most important requirements,” Law360 reports.
Capital One, meanwhile, is reportedly arguing Walmart does not have a right to terminate the contract, according to Walmart.
“Walmart thus files this case to seek a judicial declaration of its right to terminate the contract as a result of Capital One’s service failures,” Walmart said, according to Law360.
Capital One failed to mail credit card replacements within five business days, as required, Walmart says
Walmart argues Capital One failed to meet its customer service standards by allegedly failing to mail its customers credit card replacements within a max of five business days.
Capital One reportedly admitted last year it had failed to meet the credit card replacement time requirement, in addition to four other “critical” standards, including ones involving payment processing and transaction posting.
Walmart has claimed that, per its contract agreement, the credit card company only needs to fail to meet one of its “critical” standard requirements for the retailer to be able to terminate the deal, according to Law360.
A federal judge in Illinois earlier this month partially dismissed a lawsuit filed by the Federal Trade Commission accusing Walmart of looking the other way on more than $200 million worth of allegedly fraudulent money transfers.
Are you a Walmart customer that has been unsatisfied with Capital One’s customer service? Let us know in the comments.
Walmart is represented by Jesse Panuccio, Matthew L. Schwartz, Marc Ayala, Sabina Mariella and Jason Hilborn of Boies Schiller Flexner LLP.
The Walmart Capital One lawsuit is Walmart Inc., et al. v. Capital One, et al., Case No. 1:23-cv-02942, in the U.S. District Court for the Southern District of New York.
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119 thoughts onWalmart allowed to terminate agreement with Capital One, judge rules
I was a Capital One customer because I was terminated from my credit card. I had received Cabela’s credit card made some purchases with card but down the road ,I return a product and was terminated from credit card which did affect my credit score!!
Add Me. Walmart capitolone 5% cash back drew me in. Usually I qualify for around $2000 on a credit card. They qualified me for $300. They will not increase the limit despite the fact that I have never been late on a payment in the almost two years since I have had the card. BUT the bigger problem is Capital One bookkeeping and holds on pending amounts. If you purchase groceries online for delivery or pickup, Walmart pends a larger amount for weighted items and in the event they need to substitute an item. No problem. Capitol One. (Despite the fact that Walmart updates the final balance immediately after delivery or pickup) counts both the pending amount AND the completed amount against your available balance for about ten days! This is despite the fact (as confirmed by Walmart) there is only one transaction, if there is a difference in the final amount due to weighted items or necessary substitutions—Walmart makes an adjustment to the pending amount and NOT a new transaction. If you shop weekly and have Capitol One’s itty bitty $300 limit, you can’t shop again until Capitol One releases and updates the pending amount. They claim they are waiting for refund, but it is just a simple adjustment with any other cards. Then screenshot your online account. It can change several times in an hour without using it. To include those pending amounts disappearing yet still being held against available balance.
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Walmart is the only grocery store I use and the Capital One card I have is the most used credit card I have. I’ve noticed there are a lot of places and apps that won’t let me use Capital One to pay. I don’t understand this.
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Please add US! Capital One needs be Sued heavily; I believe they are a doing criminal businesses & harming Customers; (1). Capital One Refuses Refund me my money back for a Prepaid Credit Card where you give them money to get the card; WE paid them in full, years ago, but they are holding my US ($) as hostage, I opened this Prepaid Credit Card up with, with only less than a $300 line of credit: (2). then they Intentionally Refused to help me Re-activate Wal-mart Card! I called the day before my Card was to Expire; they train their employees to lie to Customers; I have stored paper-work regarding Capital One. I believe this a Fraudulent company; they only advertise to “LURE” customers; and their policies are only to protect them! Consumers are unable to find Credible attorneys in their own Individual States & Cities that will FIGHT FOR THE CONSUMERS!
I have a excellent credit over 780 and wslmart and csp one twice took way longer than needed to approve online. I wound up cancelling the request and lost the discount opportunity for using their csp one card.
Yes in Ohio which not sure if matters. I am a customer and have experience these issues
Add me I’m Walmart
They refused to refund my money because Sam’s Club cashier forgot to Activate a gift card and I sent 20 pages of proof to them not once but twice and I was out of $44.00 & my Grandkids were out of their Christmas Gift