Vermont Attorney General William Sorrell says Vermont and 49 other states have reached a settlement with a bankrupt video rental chain accused of unfair debt collection.
The chain is Movie Gallery Inc., also known as Hollywood Video, which once had six outlets and more than 27,000 customers in Vermont.
When it filed for bankruptcy in Virginia last year, the company’s accounts receivables were assigned to a debt collection firm, National Credit Solutions. People complained that that company reported negative credit information to credit bureaus, double-charged for late fees and sought to collect money that wasn’t owed.
Under the settlement, Movie Gallery Inc. trustees will withdraw the credit reports, not charge collection fees or interest on debts and stop collecting late fees and replacement charges for the same item.