Hollywood Video Collection Attempts Continue

In 2010 Hollywood Video closed its door, a victim of the changing dynamics of the video rentals business. But even though it was out of business, Hollywood Video wasn't exactly finished with its customers.

Within months many consumers began receiving calls from debt collectors, claiming the former Hollywood Video never returned a DVD or never paid a number of late fees. In nearly every case he consumers insisted they owed no money.

In 2011 a number of state attorneys general responded to the complaint and ultimately reached a settlement, whereby they agreed to remove negative information from former customers' credit reports.

Show them the money

The problem stemmed from Hollywood’s approved bankruptcy plan that created a liquidating trust to collect an estimated $244 million in outstanding debts reportedly owed by 3.3 million customers. The trust contacted with Credit Control Services, Inc. in Massachusetts, which subcontracted to National Credit Solutions of Oklahoma.

Now, there appears to be a new sheriff in town. And many of the same former customers who told debt collectors two years ago there were mistaken are getting calls again.

"Received a debt collection notice in the amount of $171.93 due to, now bankrupt Hollywood Video for a list of rentals from over 2 years ago," Dorothy, of Tinley Park, Ill., posted at ConsumerAffairs. "It does not say what the basis for the calculation is they only give a list of rentals. My account was in good standing when the store closed and I owned them no money. I had actually accumulated credits for a monthly membership that I lost when they went bankrupt. They actually owed me money, but I did not pursue it. I would like to know what my rights are.

Under the Fair Debt Collection Practices Act, the new debt collector is required to tell Dorothy and others how they can dispute the alleged debt.

Deja vu

Beth, of Valencia, Calif., was highly suspicious when she got the call.

"It's the second incident in three years where I have received a collection agency bill for items I never checked out," Beth writes. "This time it is a different collection agency and the items are entirely different. Something is going on. I have prepared a letter for the Attorney General of the state of California to be sent today."

That, actually, is sound advice. Since the attorneys general are familiar with the Hollywood Video situation, your state attorney general should hear from you if you think you are being unfairly targeted for a debt you don't owe.