Dillard's sues Wells Fargo for breach of co-branded card partnership, switches to Citigroup and Mastercard

From Yahoo Finance: 2025-05-22 20:25:00

Dillard’s, Inc. (NYSE:DDS) has filed a lawsuit against Wells Fargo & Company, claiming breach of their co-branded credit card partnership, resulting in significant losses. Wells Fargo, the fourth-largest U.S. bank, exited the co-branded card market without notifying DDS, leading to a termination process marked by alleged bad-faith conduct. Dillard’s has since partnered with Citigroup and Mastercard.

DDS accuses Wells Fargo of being an “unwilling and incapable partner” after entering into regulatory consent orders in 2016 and 2018. While Dillard’s welcomed the end of their decade-long relationship, they claim Wells Fargo continued “bad-faith conduct” during the termination process. The retailer reported $593 million in net income on $6.59 billion in revenue for the year ending February 1, 2025.

Wells Fargo has not commented on the lawsuit filed by Dillard’s, Inc. regarding the alleged breaches in their co-branded credit card partnership. Dillard’s, which operates 272 stores in 30 states, has since formed a partnership with Citigroup and Mastercard after Wells Fargo’s exit from the co-branded card market. Wells Fargo decided to exit without notifying DDS, leading to a termination process marked by alleged bad-faith conduct.



Read more at Yahoo Finance: Dillard’s, Inc. (DDS) Sues Wells Fargo Over Co-Branded Card Relationship