Dillard’s, Inc. (NYSE:DDS) has filed a lawsuit against Wells Fargo & Company, alleging the bank repeatedly breached its now-terminated co-branded credit card partnership, resulting in tens of millions of dollars in losses for the department store chain. In a heavily redacted complaint submitted to Manhattan federal court, DDS claimed Wells Fargo became an “unwilling and incapable partner” after entering into regulatory consent orders in 2016 and 2018, which addressed issues in the bank’s practices.
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Dillard’s, Inc. (NYSE:DDS) said it was “shocked” to discover in June 2024 that Wells Fargo, the fourth-largest U.S. bank, had decided to exit the co-branded card market without notifying DDS, its “premier partner”.
DDS stated it welcomed the end of the decade-long relationship but accused Wells Fargo of continued “bad-faith conduct” during the termination process. The retailer, which operates 272 stores in 30 states and reported $593 million in net income on $6.59 billion in revenue for the year ending February 1, 2025, has since partnered with Citigroup. The bank will purchase existing Dillard’s credit card accounts, with Mastercard serving as the new payment network. Wells Fargo has not commented on the lawsuit.
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