Video store tries to collect fees improperly: Naughty Business of the Week

May 10, 2011|By Liz F. Kay

Maryland residents who had been contacted by a collection agency regarding fees owed to Hollywood Video may have some additional protections after an agreement the state attorney general's office made with the trustee liquidating the company.

A collection company hired by Hollywood Video to collect fees for overdue videos and those not returned tried to collect from consumers without properly notifying them or verifying the amount due, which is why we're highlighting it as our Naughty Business of the Week.

The company also made negative reports to credit bureaus about the outstanding payments and added fees and interest to the amounts owed.

Going forward, Hollywood will rescind any remaining negative credit reports and will refrain from doing so in the future. If a customer disputes the fees, Hollywood will stop collection efforts until it can verify the outstanding balance and if customers owe both a late fee and a product fee, they will only have to pay the lesser of the two.

Customers can also contact Hollywood Video directly at Movie Gallery, Inc., Hollywood Entertainment Corp., 7405 SW Tech Center Drive, Suite 130, Tigard, OR 97223 or online at customerrequests@hlyw.com.

Or you could call the Consumer Protection Division of the Attorney General's office at 410-528-8662.

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