As many as 2.3 million former Sears credit cardholders will receive discount coupons from Sears Holdings Corp. under a settlement filed by the retailer, according to several published reports Friday.
The settlement pertains to a lawsuit brought by former Sears credit cardholders that accuses Hoffman Estates, IL-based Sears of violating the Fair Credit Reporting Act by pulling credit data when there was no permissible purpose, according to the reports. Their source was the settlement filed Aug. 16 in federal court in Riverside, CA.
Sears will give discount coupons of $10 to $15 to individuals whose credit data the retailer retrieved after it had closed and sold their accounts, the reports said. The filing reportedly indicates that as many as 2.3 million people may be entitled to participate in the settlement.
A spokesman for Sears told reporters that the company settled to avoid costs of further litigation and admitted no wrongdoing.
The settlement involves individuals with Sears accounts that were closed and sold to collection agencies between Oct. 1, 2002, and May 31, 2003, and whose credit information the retailer obtained.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters