Bankrupt video store's collections draw bad reviews



Posted on May 10, 2011 at 5:15 PM

Updated Tuesday, May 10 at 5:25 PM

It's the sequel to the story of bankrupt Hollywood Video: customers are getting hit for charges and taken to collections over movies they swore they returned.

The Hollywood Video adventure for Diane Seibold of Burien began with a loan application to remodel her kitchen.

"They said, 'There's a collection here. What is that?' And I said I don't have a clue," Diane said.

The mystery was solved quickly. Hollywood Video hit Diane's credit report for $161. She never got a notice.

"I was really angry because our credit is really good," she said.

When Hollywood Video went bankrupt last year, the court hired National Credit Solutions to collect almost $250 million in outstanding debts. Diane sent them a letter asking them to prove she owed them money.

Diane was not alone. Customers all over the country were getting their credit dinged without any notice.

In response, the Washington state Attorney General's Office led a multi-state settlement against the bankruptcy trustee that will drop any negative credit information from customers' accounts.

It tweaks Diane even more that the company at the heart of all this is from Oklahoma City.

"First you take our Sonics basketball and now you're trying to get money out of us?" Diane laughs. "I'm still angry at that one!"

The settlement requires the collection agency to drop any fees or interest added to anyone who owes money.

If you don't owe the money, dispute it. You can send the company a letter and file a complaint with AG's office.

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