Capital One settled a $16 million lawsuit over unlawful fees and lost its partnership with Walmart for credit card issuance due to service problems.
Capital One settles $16 million lawsuit and loses Walmart credit card partnership
Capital One has settled a $16 million lawsuit alleging it charged unlawful fees on certain transactions benefiting affected customers. The settlement resolves claims that the bank did not refund fees for insufficient funds or overdrafts on represented check or ACH transactions. Capital One agreed to the settlement without admitting fault. Eligible customers can submit claims until midnight tonight without additional documentation, according to the report of Washington Examiner.
(photo: Bloomberg)
Walmart Ends Capital One Credit Card Partnership Amid Service Failures
Walmart ended Capital One’s exclusive role as the credit card issuer for its rewards program. This decision came after issues including delays in transaction postings and challenges in replacing lost or stolen cards. The partnership began in 2019 offering a no-annual-fee credit card with rewards like 2% returns on in-store purchases and 5% on delivery and pick-up orders.
A U.S. District Judge ruled in favor of Walmart in a lawsuit against Capital One due to service failures. The ruling allowed Walmart to terminate the contract early. Despite recent challenges, Capital One remains the ninth largest U.S. bank with over $468 billion in assets continuing to provide financial services nationwide.
