Dillard’s has filed a lawsuit against Wells Fargo Bank, alleging the bank abandoned their long-standing co-branded credit card partnership without proper notice, resulting in significant financial losses. The complaint, filed in the U.S. District Court for the Southern District of New York, claims Wells Fargo repeatedly breached the terms of the agreement, ultimately causing tens of millions of dollars in damages. According to Dillard’s, the bank became an “unwilling and incapable partner” after it entered consent orders with the Consumer Financial Protection Bureau and the Federal Reserve in 2016 and 2018 to address issues within its banking practices.
The Arkansas-based department store chain stated it was “shocked” to discover in June 2024 that Wells Fargo had effectively exited the co-branded card market without informing Dillard’s, which it described as a premier partner. Although Dillard’s welcomed the end of their decade-long relationship, it accused Wells Fargo of continuing to act in bad faith during the termination process. In January 2024, Dillard’s entered a new co-branding agreement with Citigroup, which acquired existing Dillard’s credit card accounts, with Mastercard as the payment network. Dillard’s operates 272 stores across 30 states and reported a net income of $593 million on $6.59 billion in revenue.
