News & Resources

Video late fees sent to debt collectors

Jan 28, 2011 Kyle Duncan

Even though some video rental chains have gone out of business, the late fees have not gone away.
 Consumers in Montana have complained to the state's attorney general, Steve Bullock, that National Credit Solutions, a debt collector working for defunct video rental chains Movie Gallery and Hollywood Video, is unlawfully attempting to collect money from customers, reports the Independent Record in Helena. An investigation by the AG found that 12,325 Montanans have been affected by the ordeal, says the news source. Allegedly, the company sent negative credit reports to the national credit reporting bureaus without notifying the consumers of their debts. The AG believes that the company blatantly violated state laws. "It's crazy to think that a Montanan would be prevented from refinancing their house or buying a new car simply because they returned Caddyshack two days late," Bullock said. According to The New York Times, Movie Gallery was the second-largest video rental chain the country behind Blockbuster before it filed for Chapter 11 bankruptcy protection in October 2007. The company also operated the Hollywood Video and Game Crazy brands.