![]() The credit card partnership agreement requires that Walmart ( WMT) or one or more new card issuers pay to Capital One ( COF) a purchase price that is equal to par for the private label accounts and equal to fair market value for the co-branded accounts, Capital One said. Capital One disputes that Walmart has any right to change the terms of the existing partnership mid-stream, and we will vigorously protect our contractual rights in court." (Added at 9:28 AM ET.) ![]() "These servicing issues were immaterial and cured by Capital One pursuant to the terms of the agreement, without harm to customers, the program, or Walmart. "Walmart’s ( WMT) lawsuit is an attempt to renegotiate the economic terms of the partnership it agreed to just a few years ago, or end the deal early," a Capital One ( COF) spokesperson told Seeking Alpha in an emailed statement. If the court allows Walmart ( WMT) to end the card program early, Capital One ( COF) expects that resulting transfer of its card portfolio to a new issuer to occur no earlier than January 2025. For 2022, the card program produced ~$214M in net income, Capital One said in a filing. 31, 2022, the card program consisted of $8.3B in ending outstanding loan balances and the allowance for credit losses related to the card program portfolio was ~$314M. Specifically, the giant retailer accused the credit card issuer of falling short on its customer care practices, such as delivering replacement cards to customers within five days and promptly posting transaction and payment information to customers' accounts, according to media reports. The suit, filed last week in the Southern District of New York, alleges that Capital One ( COF ) didn't live up to certain terms of their pact. At midafternoon, the stock had erased the loss and rose 0.2%. All rights reserved.Capital One Financial ( NYSE: COF) stock dropped 3.3% in Monday premarket trading after Walmart ( NYSE: WMT) filed a lawsuit seeking to end the companies' credit card contract. Live better are marks and/or registered marks of Walmart, Inc. The "Spark" design ( * ), Walmart and Save money. Google, Android and Google Play are trademarks of Google Inc., registered in the U.S. ![]() App Store is a service mark of Apple Inc. Green Dot is a registered trademark of Green Dot Corporation.Īpple and the Apple logo, and iPhone are trademarks of Apple Inc., registered in the U.S. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Green Dot Bank also operates under the following registered trade names: GO2bank, GoBank and Bonneville Bank. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. Visa is a registered trademark of Visa International Service Association. Walmart Mone圜ards are issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A., Inc. Mobile or email verification and mobile app are required to access all features. ![]() Activation requires online access and identity verification (including SSN) to open an account. Must be 18 or older to purchase a Walmart Mone圜ard. ![]()
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