Blockbuster Video has agreed to pay $630,000 to claimants in 47 states who were taken in by their "End of Late Fees" campaign and to issue refunds to thousands of others.
The problem started when Blockbuster announced that they were ending their late fees. What they didn't tell customers was that if a video wasn't returned after a certain amount of time, the customer's credit or debit card would be charged to replace the video. Once the video was returned, the replacement charge on the credit card would be returned EXCEPT for $1.25 or the full price of the rental which Blockbuster would keep to "restock" the video.
That is a hidden late fee.
So Blockbuster was sued by an unknown number of people, claiming to have been taken in by this and today's action by Blockbuster is meant to rectify the situation.
Here's the story.
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