<PAGE>
 
                                                                   10.(ii)(B)(2)


                       MONTGOMERY WARD CREDIT CORPORATION

                                 March 27, 1998


Mr. John Workman
Montgomery Ward & Co., Inc.
619 West Chicago Avenue
Chicago, Illinois  60610


                  Re:  Amendment to Account-Related Agreement
                  -------------------------------------------

Dear John:

     This letter confirms the following amendments to that certain Account-
Related Agreement, dated as of April 1, 1996 (the "Account-Related Agreement"),
by and between Montgomery Ward & Co., Incorporated ("MW") and Montgomery Ward
Credit Corporation ("MWCC"). For purposes of this letter, capitalized terms not
otherwise defined herein shall have the meaning assigned to such terms in the
Account-Related Agreement.

Definitions
-----------

     1. The following definition is added to Section 1 of the Account-Related
Agreement after the definition of "Subsidiary":

          "Supplementary Store Closing-Related Account" shall mean an account,
the primary Cardholder in respect of which:

               (a)  (i) is associated with a retail Store location or locations
                    operated by MW or an Authorized Affiliate being closed or
                    sold on a Store Closing Date (as defined in the Bank Program
                    Agreement), (ii) does not live within thirty (30) miles of
                    the zip code area of a retail Store location or locations
                    operated by MW or an Authorized Affiliate not being closed
                    or sold on a Store Closing Date and (iii) has not made a
                    purchase at a retail Store location other than at a closed
                    Store during a consecutive 12-month period during the period
                    commencing twelve months prior to the Store Closing Date and
                    ending twelve months after the Store Closing Date;
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               (b)  (i) is associated with a retail Store location or locations
                    operated by MW or an Authorized Affiliated being closed or
                    sold on a Store Closing Date, (ii) lives within thirty (30)
                    miles of the zip code area of a retail Store location or
                    locations operated by MW or an Authorized Affiliate not
                    being closed or sold on a Store Closing Date and (iii) does
                    not make a purchase at a retail Store location not being
                    closed or sold on the Store Closing Date during the 12-month
                    period following the announcement of the Store Closing; or

               (c)  in the event that the relevant Store Closing does not
                    involve the closing of a retail Store location, has not made
                    a purchase on his or her Account at a Store other than the
                    Store(s) that are closing or being sold as part of the Store
                    Closing in question within the immediately preceding 12-
                    month period.

Store Closing
-------------

     2. The following are added as new Section 5.14 (5) and new Section 5.14
(6):

          (5) At any time that MWCC owns Supplementary Store Closing-Related
          Accounts in connection with such Store Closing may (a) issue (or
          authorized a Person to issue) to some or all Cardholders obligated in
          respect of such Supplementary Store Closing-Related Account a
          replacement or substitute widely-accepted general purpose credit card,
          whether or not co-branded, and market (or authorize the issuer to
          market) goods and services to the holders of such replacement or
          substitute cards, (b) sell such Supplementary Store Closing-Related
          Accounts (or the related portion of the Customer List (as defined in
          the Bank Program Agreement)) to any Person, provided such person may
          issue new cards only in accordance with (a) above, and/or (c) cease to
          authorize purchases on and close such Accounts. All Store Closings
          that have occurred or may occur after July 7, 1997, shall be
          considered Store Closings to which this paragraph applies. In the
          event that any Store Closing(s) occur hereafter, at least ninety (90)
          days prior to any Store Closing Date, MW shall deliver to MWCC a
          written notice identifying the Store location or locations that will
          be closed or sold on such Store Closing Date. Except as provided
          above, MW shall continue to have the right to market goods and
          services sold by MW to such Customer List as such list existed upon
          the date of such Store closing.

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     (6)  MW shall cause Signature to cease marketing to all Supplementary Store
          Closing-Related Accounts on and after the date such Accounts first
          constitute Supplementary Store Closing-Related Accounts. MWCC shall
          continue to authorize purchases of items sold by Signature to the
          extent then being billed on a continuing or renewal basis as long as
          MWCC owns such Accounts and the Cardholders obligated in respect
          thereof are in good standing with respect to payments owed on their
          Accounts, except that MWCC at any time may cease such authorizations
          upon ninety (90) days' notice to Signature and MW in the event that
          MWCC in good faith determines that continuing such authorizations no
          longer is economically appropriate for MWCC.

     If the foregoing evidences your understanding of the amendments agreed to
by the parties, please acknowledge the same by signing below.

 
                                     MONTGOMERY WARD CREDIT
                                     CORPORATION
 
                                     By:    /s/ Marc Sheinbaum
                                           -----------------------------------
                                     Name:   Marc Sheinbaum
                                     Title:  President & Chief Executive Officer


                                     ACKNOWLEDGED & AGREED:


                                     MONTGOMERY WARD & CO., 
                                     INCORPORATED


                                     By:    /s/ John Workman
                                           -----------------------------------
                                     Name:   John Workman
                                     Title:  Executive Vice President

     General Electric Capital Corporation, as guarantor of the obligations of
MWCC under the Account-Related Agreement, hereby acknowledges the terms and
agrees that the Guaranty is not invalidated hereby and that the Guaranty
continues in full force and effect in accordance with its terms with respect to
the Account-Related Agreement as so amended.

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<PAGE>
 
                                     GENERAL ELECTRIC CAPITAL 
                                     CORPORATION


                                     By:    /s/ Marc Sheinbaum
                                           -----------------------------------
                                     Name:   Marc Sheinbaum
                                     Title:  Vice President


                                     SIGNATURE FINANCIAL/MARKETING, INC., 
                                     FOR ITSELF AND ITS SUBSIDIARIES, 
                                     ACKNOWLEDGES THIS LETTER.


                                     By:    /s/ John Workman
                                           -----------------------------------
                                     Name:   John Workman
                                     Title:  Acting Chief Financial Officer

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