HARRISBURG - Attorneys General from 49 states and the District of Columbia have reached a settlement with Hollywood Video resolving allegations of unfair debt collections practices.

Acting Attorney General Bill Ryan said the settlement affects approximately 3.3 million consumers in all 50 states and the District of Columbia, including more than 87,000 Pennsylvania consumers.

Ryan said that Hollywood Video operated video rental stores across the country, until the company filed for bankruptcy in 2010. There were approximately 80 rental stores throughout Pennsylvania.

According to the settlement, following their bankruptcy announcement, Hollywood Video's accounts receivable were assigned to National Credit Solutions (NCS), a debt collection agency.

Ryan said that after NCS took control of the accounts consumers claimed that negative credit information was reported to credit bureaus, without advance notice or the opportunity to challenge the debt.

As part of the agreement, the bankruptcy trustee, Movie Gallery, Inc. Bankruptcy First Term Lenders Liquidating Trust, agrees to:

.Cancel all previously submitted consumer credit reports.

.Not submit any future consumer credit reports.

.Not charge collection fees or interest on principal amounts consumers owe.

.Not charge consumers double for late fees.

.Protect consumers from future abusive practices in collection of the accounts.

The settlement was filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division. The Court approved the settlement by order dated May 5, 2011.