In 2010, video rental store Hollywood Video and its parent company Movie Gallery, went out of business. However, consumers are continuing to be harassed by debt collectors who claim they still owe money to the store. One of those debt collection agencies, Universal Fidelity, has received 500 consumer complaints concerning their Hollywood Video debt collection during the past 90 days, according to NBC News.
Even though Hollywood Video was owed approximately $250 million dollars from consumers when it declared bankruptcy, the collection agencies pursuing that money have used unfair debt collection practices. In fact, due to the collection practices employed by its former agency, National Credit Solutions, Hollywood Video settled debt collection practice claims with attorney generals from all 50 states. According to the settlement, the company agreed to remove all credit damage done to consumers and refrain from using threats.
However, in the past several months, hundreds of consumer complaints have poured in from states across the country concerning Hollywood Video debt collection once again. Complaints include that the collection agency has threatened legal action and credit damage. Additionally, consumers have denied owing many of the debts while the collection agency is claiming that the debts can only be removed by either paying the bill or providing a receipt showing payment. Better Business Bureaus from various states are currently investigating the claims.
If you or a loved one is the victim of unfair debt collection practices, putting an end to your victimization may be incredibly difficult without strong legal representation. Riverside fair debt collection attorney Howard D. Silver is dedicated to aiding consumers and holding debt collectors responsible for their actions. For more information on how we help you or your loved one, call (855) 341-2611 today.