Blockbuster Video Late Fee Complaints

• The Complaint. With the rest of America, I read the headlines in December of 2004: "Blockbuster Inc. announced Tuesday it is abolishing late fees on all its video tapes, DVDs and video games as of Jan. 1." Link. Out front at all Blockbuster stores big banners were hung reading, "No More Late Fee". I rejoiced. Hallelujah. Thank the maker. Everything was cool and I stopped worrying about rushing my videos back to Blockbuster to avoid late fees. Although I signed up for Netflicks late in 2006, I still occasionally rented videos at Blockbuster when the urge hit myself or my wife to watch a flick other than the current titles we had in the house from Netflicks. Then a funny thing occurred last month (April 2007): after a movie from Blockbuster had been in our house for a week, we received a recorded message on our answering service that Blockbuster had charged my credit card for the full purchase price of the video at my house. According to the message, as the movie was late, Blockbuster was converting the rental to a purchase. Say what? Since when did the "no late fee" policy change? Now, if I am late with a movie, I get charged for purchase of the movie? What a bunch of garbage. The message stated that, when I return the movie, the purchase price will be refunded. I have yet to receive a credit card bill showing a credit from Blockbuster so we shall see how it goes down.
  Joseph Raymond
  St. Louis, MO
  5-6-2007
  
• The new policy. "Blockbuster stores in several states are quietly resuming late fees for customers who keep movies too long, rejecting the video-rental chain's national advertising of 'No Late Fees!' because they can no longer keep popular movies on their shelves. * * * Blockbuster last winter said it would drop late fees, but its fine print said the company would charge consumers the cost of the video if they kept the movies too long. If the movie was subsequently returned, the charge would be refunded but there would be a $1.25 restocking fee. In March, the Dallas-based company settled complaints heard in 47 states and authorized refunds for offended customers." USAToday Article, 12-15-2005. Way to spread the word Blockbuster, today is the first I have heard of a new company-wide policy on late fees.
• Other complaints on the net. Others have made the same complaint on the web: "Bill of Huntsville AL (12/10/05)--I went to Blockbuster tonight to rent a movie and was told that I owed a 2 day late fee for a recent rental. I explained that I thought that Blockbuster had no late fees. The employee explained that the company had rescinded the "no late fee" policy. I explained that I was not notified of this when I rented my last movie and that changing the rules without properly notifying your customer was not ethical. The employee offered to half the late fee with me, but I declined. I turned in my Blockbuster card, canceled my account and left the store. I can do business elsewhere." Link.

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