Sears, Roebuck and Co. said it agreed to pay $178 million or more to settle a class action over the illegal collection of bankruptcy debt from its cardholders.

Sears has admitted it improperly filed repayment agreements for 30% to 65% of bankrupt debtors who have agreed to repay their debt since 1992. In all, Sears had illegally collected $412 million in reaffirmed debt.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.