Bankrupt Hollywood Video to work with customers

Bankrupt Hollywood Video has agreed to repair customers' credit, lower past due bills and provide proof of late fees.

Like a bad movie, the story behind Oregon-based Hollywood Video’s bankruptcy just won’t end. For now it’s a happy intermission for the more than 3 million customers the company said owe more than $244 million in late fees or for not returning rented movies.

Last January KGW viewers started claiming that Hollywood Video--or a collection agency it hired--was trying to collect on what customers called bogus bills.

Carie Bishop-Sanders said, “They (the collection agency) were saying I returned a movie late a few years ago evidently and now because of the late fees I owe them $99. I asked them for proof and they said they didn’t have to provide it, but that if I didn’t pay they’d send me to collections.