Blockbuster Settles ‘No Late Fees’ Debacle

Dallas, Blockbuster Inc. will pay up to $630,000 in an effort to quell customer dissatisfaction with the video-rental chain’s “No Late Fees” policy, the company said yesterday. The sum will settle 47 states’ claims that the policy, unveiled in December, deceived customers. Blockbuster also will reimburse customers who believe they were misled and charged restocking fees or the full price of rentals that were returned a week after the due date, said Pennsylvania Attorney General Tom Corbett in a statement.

Though the settlement does not include plans to change the “No Late Fees” policy, Blockbuster said it would make policy information more available to customers in its stores. Under the program, customers were to have a one-week grace period after the rental due date. However, customers claimed they were unaware that they would be made to automatically purchase the title if returned any later.