Hollywood Video Collectors Violate Law Over Movie Late Fees

According to the Roanoke Times and the Hutchinson News, the Hollywood Video/National Credit Solutions drama has gone into wide release, coming by phone and postal carrier to cities and towns across Kansas and Virginia.

Things are heating up in Oklahoma as well. The BBB serving central Oklahoma revoked National Credit Solutions’ accreditation.

An investigator for IdentityTheft911 describes his recent efforts to help a woman try to get to the bottom of a collection letter she received from NCS demanding $94.48 due to late fees from videos she supposedly failed to return on time. Impossible, said the woman, as she paid for a premium account that allowed her to rent games for an unlimited amount of time.

The call became even more bizarre as the collection agent explained that many of their initial collection notices are sent by postcard, and that she was unwilling to send written verification of the debt, both of which are violations of the federal Fair Debt Collection Practices Act. She was also assured by the collector (who went by a stage name of Billie Holiday), that if she paid the debt it would be immediately removed from her credit reports. Never mind the fact that the credit reporting agencies prohibit “pay for removal” deals.

Stay tuned for the sequel. However, regardless of how this story ends, always be alert. Pay bills on time. And know your rights when dealing with debt collectors, which can be a real horror show — definitely not for the faint at heart.

Credit.com offers these script prompts when contacted by a collection agency:

When you receive a collection call or notice, you have the right to request verification of the debt. Send your request by certified mail and keep a copy for your records.
Take detailed notes when talking with a debt collector over the phone. Keep those notes in a file with copies of all correspondence from and to the collector.
Order your credit reports to see if a collection account is listed on your credit reports. You have the right to dispute an inaccurate collection account with the credit reporting agencies as well.
File a complaint with the Federal Trade Commission and your state’s Attorney General or Department of Consumer Affairs. While these agencies don’t resolve individual disputes, they can step in and take action when they see a pattern of abuse, as the Montana Department of Justice, Office of Consumer Protection has done.

Image by Thomas Hawk, via Flickr