[UPDATE: ML Readers will recall this case in which Gander Mountain took issue with a credit card vendor that allegedly refuses to pay an agreed-upon card-holder “bounty” for customers who are unprofitable for the card company (i.e., they pay off their card balances, incurring no penalties and paying no interest). Now World Financial Network National Bank has come back swinging with a counterclaim based on Gander Mountain’s failure to file their complaint under seal when it included confidential information that was picked up by the Star Tribune…]
Gander Mountain, purveyor of hunting, fishing, and outdoor gear, is in a spat with the bank with whom it entered into an agreement for store-branded credit cards. Gander Mountain has filed a complaint in the U.S. District Court (D. Minn. (Montgomery, J.)) alleging that the bank would prefer not to issue cards to Gander Mountain customers with excellent credit (that is, a “FICO score” over 800 (scale is from 300-850)).
The bank, World Financial, is alleged to have said that “it was not achieving a satisfactory economic benefit through the contractual arrangement because it was not earning profit on those accountholders who have an 800 or greater FICO credit score.” Gander Mountain sues for breach of contract and for injunctive relief.