Blockbuster will pay more than $140,000 to customers and the state of New Jersey in a settlement over its 'No Late Fees' program.
Blockbuster will pay more than $140,000 to customers and the “state of New Jersey in a settlement over its “No Late Fees program.
New Jersey attorney general Peter C. Harvey and its consumer affairs director Kimberly Ricketts filed suit against the rental chain last February, alleging that Blockbuster did not disclose the details of the program in advertisements.
Customers who keep a rented title beyond the eighth day after its due date are automatically charged the full retail price of the item. They will be charged a $1.25 restocking fee if that title is returned within 30 days.
According to a release from Harvey’s office, Blockbuster will credit member accounts in New Jersey more than $90,000 and will pay the state $50,000 for attorneys’ fees and investigative costs.
The chain will also have to beef up its notifications of all charges associated with the “No Late Fees” program.
Blockbuster has already paid out $630,000 to settle legal claims about “No Late Fees” brought by 46 states and the District of Columbia.