The Arizona Attorney General’s Office is warning consumers about debt collection efforts by Hollywood Video and Movie Gallery. Some consumers have notified the office they have collection letters but did not rent a video or are not responsible for late fees, the office said.
Companies collecting on behalf of the video rental chains have agreements with 50 states and the District of Columbia regarding their practices, including that the agencies will not file adverse reports with credit reporting agencies or bureaus. Also, they may not threaten adverse credit reporting for nonpayment, and they cannot collect fines or interest. Collectors must send a written “validation notice” saying how much money you owe within five days after first contacting you. They must include the name of the creditor and how to object.
