PIERRE, S.D.- Attorney General Marty Jackley is warning South Dakota consumers of possible negative collection notices that may appear on their credit report. The Consumer Protection Division has received complaint calls from consumers who claim to have negative information on their credit reports associated with the now closed Movie Gallery/Hollywood Video rental chain.
Movie Gallery/Hollywood Video is in the process of liquidating its assets as part of a bankruptcy. As part of that process, National Credit Solutions, a debt collection agency, is attempting to collect alleged late charges and other charges owed on movies rented before the stores closed. This includes a high collection fee as well. National Credit Solutions has not contacted South Dakota consumers prior to placing negative collection attempts on their credit reports.
“Many consumers do not believe that they owe this debt, and that is very concerning to us,” states Jackley. “National Credit Solutions has assured us that they are in the process of temporarily withdrawing all negative credit reports filed against South Dakota consumers who they claim owe late fees and other charges to Movie Gallery/Hollywood Video. However it has indicated that it might return the negative reports or may continue collections attempts by phone or mail in the near future.”
Consumers should take these steps to assure their credit has not been affected:
- Check your credit report- If you rented movies from Hollywood Video, you could be a victim of this collection activity. You can obtain one free report per year from each of credit reporting agencies at www.annualcreditreport.com. This is a free service.
- Note: While other Credit reports may be obtained using other services, including services that advertise using the word “free.” BE AWARE THAT THESE SERVICES MAY CHARGE YOU FEES.
- Write a letter: If you have a negative credit report from National Credit Solutions, you may wish to send them a certified letter asking for validation of the debt.
If you are unable to resolve the issue with the collection agency and believe that you do not owe this debt, contact the Consumer Protection Division at 800-300-1986 or email@example.com
FOR IMMEDIATE RELEASE: Thursday, February 10, 2011
CONTACT: Sara Rabern, (605) 773-3215