Advertisement

May Is Focus of Credit Card Customer Suit

Share
Bloomberg News

May Department Stores is the target of a lawsuit that claims its Filene’s unit wronged two credit card customers in Massachusetts who agreed to keep paying Filene’s even though they were under bankruptcy protection. The suit, which seeks class-action status, is the first filed against another retailer after Sears, Roebuck & Co. admitted earlier this month that it had wronged credit card customers by failing to file the proper papers after bankrupt debtors agreed to keep making payments. The lawsuit claims two debtors, Diana Mazola and George Yessayan, each filed so-called reaffirmation agreements, or agreements debtors make to continue to pay creditors. While the agreements are legal, they must be approved in Bankruptcy Court. The suit claims the two agreements weren’t properly filed. St. Louis-based May couldn’t be immediately reached for comment.

Advertisement