Retail Giant Sues Big Bank for Dipping Out on Credit Card Deal

Dillard’s, the department store your grandma loves and your cousin still shops at, just hit Wells Fargo with a lawsuit that reads like a breakup text gone wrong.

In a Manhattan federal court, Dillard’s claims Wells Fargo bailed on their co-branded credit card partnership without so much as a “we need to talk.” The retailer says this ghosting cost them tens of millions of dollars. They were “shocked” to find out last June that Wells had decided to ditch the co-branded card game entirely—without telling Dillard’s, their so-called “premier partner.”

Let’s rewind. Dillard’s and Wells Fargo had been in a decade-long relationship, offering customers a co-branded credit card. But things started to sour after Wells got slapped with consent orders in 2016 and 2018 by the Consumer Financial Protection Bureau and the Federal Reserve. These orders were meant to fix the bank’s shady practices, but according to Dillard’s, they turned Wells into an “unwilling and incapable partner.”

Fast forward to June, and Dillard’s finds out—through the grapevine, not directly—that Wells is exiting the co-branded card market. Talk about being left on read. Dillard’s agreed to end the partnership but says Wells kept acting shady during the breakup process.

Not one to sit around and cry into their clearance rack, Dillard’s moved on. In January 2024, they teamed up with Citigroup and Mastercard for a new co-branded card. Citi bought up the existing Dillard’s credit card accounts, and Mastercard became the payment network. Dillard’s President Alex Dillard said they’re confident this new partnership will offer “first-class credit choices and exceptional cardholder experiences.”

Meanwhile, Wells Fargo has been trying to clean up its act. In April, the CFPB terminated a consent order related to the bank’s compliance risk management program. That’s the 12th consent order closed since 2019 and the sixth this year. Still, Dillard’s isn’t buying the redemption arc. They’re suing for breach of contract and bad-faith conduct.

The case is Dillard’s Inc et al v. Wells Fargo Bank NA, case number 25-04330, in the U.S. District Court for the Southern District of New York.

Thoughts: Wells Fargo out here ghosting like it’s Tinder. Dillard’s said, ‘Nah, we’re taking this to court, not therapy.

Disclaimer: This article is a humorous take on recent legal events and is intended for entertainment purposes only. All information is based on publicly available sources as of May 24, 2025. For detailed legal proceedings, please refer to official court documents.