Idaho is part of a nationwide settlement involving Hollywood Video impacting thousands of Gem State consumers who have outstanding rental accounts with the bankrupt business. Complaints to Attorney General Lawrence Wasden's office alleged that collection agencies were attempting to collect excessive fees from former Hollywood Video customers and reporting negative account information on customers' credit reports.
The problems started after Hollywood Video and Movie Gallery filed for Chapter 11 bankruptcy in 2010.
"Without first notifying consumers about their delinquent accounts, the collection agencies reported consumers' accounts to credit reporting agencies," said Wasden. "This settlement will help repair consumers' damaged credit reports."
The settlement rescinded all previously filed negative credit reports and agreed that no interest would accrue on consumers' debts and no collection fees will be collected from consumers.