Ward Audit Finds Collection Problems

Chicago-based Montgomery Ward Holding Corp. may have violated practices related to the collection of debt from credit card customers, based on an internal audit by the retailer’s majority shareholder. General Electric Co.’s GE Capital Services unit said an internal audit of debt collection practices identified some “issues which we’re moving swiftly to rectify,” according to spokesman John Oliver. Oliver said GE was confident that the matter won’t be material to GE or Montgomery Ward. The investigation follows Sears, Roebuck & Co.’s admission last month that it wronged certain credit card customers by not filing proper papers after the debtors agreed to keep paying even after they had filed for bankruptcy protection.