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.

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