DENVER — Colorado Attorney General John Suthers announced today that his office has joined a multistate settlement with Hollywood Video to settle allegations that the company engaged in improper debt collection practices. According to the settlement, Hollywood Video’s collection agent, National Credit Solutions, reported negative credit information to credit bureaus on widespread basis without prior customer notice or opportunity for challenge, resulting in credit rating damage to affected consumers. Many consumers’ first notice of the claimed indebtedness was by credit damage, such as reduced credit card limits or credit application denial.
The settlement provides immediate consumer relief by removing adverse credit reports, waiving interest, limiting what debts can be collected, and protecting against future abusive collection practices. The approximately 3.3 million customer accounts at issue — including an estimated 50,000 Colorado customer accounts — involve residents of all 50 states and District of Columbia.
Under the settlement Hollywood Video will rescind all previously filed negative credit reports and will be prohibited from;
- Reporting any non-payment of alleged debt to any Credit Reporting Agency ever.
- Accruing interest on any alleged debt.
- Collecting Fees on future collections.