ver since Hollywood Video went bankrupt in 2010, former customers have received collection notices for missing or past due movies. While the bankruptcy allowed Hollywood Video to contract with a liquidating trustee to collect an estimated $244 million in debts reportedly owed by 3.3 million customers nationwide, much of the previous collection efforts failed to comply with the law, as collection notices were added to customers’ credit files without warning.
Not only did most of the former customers not owe any money in the first place, collection laws require that consumers be given a chance to pay or dispute their debts prior to their addition to the consumers’ credit file. In a 2011 settlement, similar allegations were brought and resolved against National Credit Solutions and Credit Control Services, collection agencies which were initially contracted by Hollywood Video after the company filed for bankruptcy.
History appears to be repeating itself with Universal Fidelity the latest collection agency to potentially skirt the law in its collection efforts against innocent former Hollywood Video customers.
If you have received a collection letter from Universal Fidelity representing “Legal Successor of Hollywood Video” for unsubstantiated and potentially bogus past charges from Hollywood Video, please contact us to discuss your legal options.