Blockbuster Settles with WI Customers Over "End of Late Fees"

By: NBC 15
By: NBC 15

If you've rented a video from the nation's largest movie rental chain recently, you may have a refund coming your way. That's because Blockbuster is paying up for an advertisement 47 states are calling misleading.

Tuesday, the company agreed to pay a $630,000 settlement and to clearly post how their "End of Late Fee's" program works.

Wisconsin joined in the multi–state lawsuit, claiming that while the ads said no late fees, customers were charged for the price of the movie or a restocking charge if the video was not returned after seven days.

"The issue is that they got in all these new consumers which the company readily admits because they said no late fees, but indeed there were fees attached to the late return of movies, so that is where the problem lies," says Wisconsin Attorney General Peg Lautenschlager.

"Majority of our clients are returning them within a day and a half or two days, so we know our customers understand it, they like it, but we are happy to do anything we can to make it clearer," says Blockbuster spokesperson Karen Raskopf.

Wisconsin was awarded $12,500 in the settlement. The money will go to refund Blockbuster customers affected by the late fee program.

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