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CFA: Bill collection alert

Customers of bankrupt video rental chain targeted

Updated: Tuesday, 31 Jan 2012, 6:26 PM EST
Published : Tuesday, 31 Jan 2012, 6:26 PM EST

East Providence, R.I. (WPRI) - Former customers of now bankrupt Hollywood Video may be in for a shocker.

We've learned hundreds of people claim they're now receiving debt collection notices, some with excessive fees.

Hollywood Video entered bankruptcy in 2010 with  unpaid debts by 3.3 million customers totaling $244,000.

But many of those customers contacted by a collections agency say the bills are unfounded, and have since filed complaints with the Better Business Bureau.

In some cases, customers claimed the collectors were providing false information to credit reporting agencies.

Consumer attorney Chris Lefebvre says consumers should pause before forking over any money.

"Whether or not they have an obligation from two or three years ago, you can dispute the validity of this obligation," said Lefebvre.

He also recommends sending a certified letter asking for documentation of debt.

"If they don't, that's a warning sign that you might not owe this obligation and don't pay it," said Lefebvre.

By law collection agencies must provide proof of debt within 30 days of receiving your certified letter.

 


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