The settlement agreement with the states generally permits the continued collection of valid amounts owed by former customers of Movie Gallery and Hollywood Video. There are, however, some limitations in the settlement agreement on what kinds of charges may be collected. Fees not to be collected are: 1. Any collection charges, including interest, in excess of the principal amounts incurred by the customer, 2. combined late fees and product charges for the same rental transaction and 3. stand- alone product charges related to a single rental transaction. Other than these limitations, the settlement agreement does not contain any determinations regarding the validity of, or the amounts of specific claims asserted against individual customers. Customers, like you, still retain the right to dispute whether amounts sought from them are in fact owed. If customers have questions or concerns regarding the settlement agreement, they should contact their state’s attorney general general’s consumer protection section for additional information
Q: “Why haven’t I heard about this earlier?”
A: These accounts are part of the bankruptcy estate of Hollywood Video/Movie Gallery. If we have contacted you now, it is on behalf of the trustee. A trustee has been assigned by the bankruptcy court to liquidate the assets of the debtors including delinquent customer accounts.
Q: “Is this going to be reported to my credit report?”
A: These accounts will not be reported to the credit bureaus.
Q: “I had a power play membership that didn’t charge late fees, how do I
have a balance due?”
A: Power play didn’t cover unlimited rentals for everyone. It was only good for certain titles (new releases were excluded, as were games for various programs). Also, you could have had a “2 out” program and rented a 3rd or 4th movie. The additional movies would have been subject to fees just like anyone else’s rentals.
Q:“I was an employee of Hollywood Video and didn’t get charged late fees, how do I have a balance due?”
A: Hollywood Video/Movie Gallery had no such policy allowing employees to rent for free or have no late fees.
Q:“My credit card was on file with Hollywood Video, why wasn’t my balance paid via auto debit?”
A: There was a debit program for power play memberships, however, late fees were never debited automatically.
Q:“I wasn’t allowed to rent movies if I had outstanding late fees, how do I have a balance due that includes multiple rental dates?”
A: There was no company policy stating you could not rent if you had outstanding late fees. The sales associate would typically say “you have some late fees, do you want to pay these today or on your next transaction? All a customer had to state was ”I will handle them next time” and they were allowed to rent their movies. It is possible that the associate never mentioned your late fees on the next visit. Floating late fees from one visit to the next resulted in balances being due at the time of closing.