The Washington Post

Legal settlement could resolve false late video fees

Has Hollywood Video or Movie Gallery been after you to pay late fees that you just swear you don’t owe?

Relief may be coming.

Virginia Attorney Gen. Ken Cuccinelli (R) announced Thursday that a settlement has been reached — along with 48 other states —with the trustee handling bankruptcy proceedings for the companies over practices by a debt collector hired in the proceedings.

Apparently, after collectors Credit Control Services Inc. and National Credit Solutions were hired, there was a spike in complaints from customers who said they’d been erroneously told they owed money. Six hundred people complained in Virginia alone.

Under the settlement, the companies have agreed that they won’t charge interest and will ensure non-payments don’t affect customers’ credit ratings. The settlement will affect as many as 76,000 Virginians, Cuccinelli said.

“This agreement will help ensure that the trustee only collects from those consumers who actually owe money to the companies.”  

Rosalind Helderman is a political enterprise and investigations reporter for the Washington Post.


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