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Hollywood Video back from the dead — to collect late rental fees

February 8, 2012

Press Pause on Faulty Video Rentals
By Better Business Bureau,

Former customers of Hollywood Video allege that they are now receiving collection calls and notices from Universal Fidelity LP regarding past-due movie rentals and fees associated with unreturned movies. Most complainants say that fees are excessive and debts are unfounded; some fear that false information may be submitted to credit reporting bureaus.

In a 2011 settlement, similar allegations were brought against National Credit Solutions (NCS) and Credit Control Services, collection agencies which were initially contracted by Hollywood Video and Movie Gallery after the companies filed bankruptcy in 2010.

While collection companies are within their legal rights to collect legitimate debts, Better Business Bureau serving Alaska, Oregon and Western Washington urges consumers to pause before paying:

Rewind: Get proof of balances due to unreturned movies or unpaid late fees.
– Request written proof of debts: By law, collection agencies must provide validation notices within five days of contacting consumers about debts.
– If calls inaccurately claim unreturned rentals: Video stores often do not provide return receipts, so write down all of the details: movie names, video store locations and return dates.
– If old late fees were already paid: Try to locate documentation”such as receipts, old check records, and credit card or bank statements.

Eject: Contest invalid debts. Contact any involved parties to clear up discrepancies.

•Contact the location: If it is a closed branch or franchise, try contacting the corporate headquarters to find out if they can address account problems. Be prepared to provide all relevant information. Consumers with complaints on Hollywood Video and Movie Gallery can email customerrequests@hlyw.com.

•Communicate with debt collectors: Write letters to collection agencies; dispute charges, state your case and include supporting documentation. Send letters via certified mail with return receipts.

•Check credit reports: Visit annualcreditreport.com to review credit reports on a yearly basis. Dispute false debts with the three major credit bureaus.

Stop: If issues are not resolved, file complaints with the Federal Trade Commission at ftc.gov, Better Business Bureau at bbb.org, and the state Attorney General’s office. Visit BBB’s site for more tips on debt collectors.

  
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