Attorneys general from 50 states including Florida have reached a settlement with creditors overseeing the dismantling of the defunct Hollywood Video and Movie Gallery chains to restrain their hired debt collectors.
Consumer affairs agency switchboards lit up with complaints after National Credit Solutions and Credit Control Services began slapping added late fees and interest penalties on 3.3 million of the video chains' former customers who owe a claimed $244 million. The ruling affected 81,000 customers in Florida who were taken off the hook for $6 million in charges. Many claimed they had long ago settled with stores and were provided no proof they owed the money.
In the agreement, the agencies agreed to rescind negative credit reports already dispatched and stop trying to collect added fees. In cases where the agencies are trying to collect both late fees and principal charges for non-returned products, they will only seek whichever amount is less.