Settlement with Hollywood Video, Movie Gallery

Missouri, along with a number of other states and the District of Columbia, has reached a settlement with the liquidating trustee, Bankruptcy First Term Lenders Liquidating Trust, handling the bankruptcy of Hollywood Video and Movie Gallery. Both companies had previous operations in Cape Girardeau County.

Attorney General Chris Koster said following the bankruptcy, former customers of the stores from across the country complained that a third-party collection agent reported negative credit information to credit bureaus without giving the consumers notice or an opportunity to challenge the information.

He said consumers had no idea they had credit damage until they were denied credit or were only approved for limited credit, and many denied owing any money at all.

Koster said his office helped negotiate a nationwide settlement with the liquidating trustee that requires the negative information be removed from consumers' credit reports.