Late fees from Whanganui video store transferred to collection agency

Linda Spence and Desiree Wright closed down Whanganui's Video Ezy in August.

Overdue fines from the last Whanganui video store to close have been transferred to a collection agency.

The Video Ezy store on Victoria Ave closed at the end of August following the brand's decision to pull out of the New Zealand market.

This month a Whanganui woman received a notice from ecollect for three late fees.

A $7.50 admin fee has been added to the outstanding amount which was required to be paid within 14 days.

The notice says failure to do so will result in at least $22.50 being added as a late fee.

While she was happy to pay the late fees, she felt she should have been given an opportunity to pay before it went to an agency.

But the collection notice says: "... a video store is not required to notify you of an outstanding debt and is entitled by law to pursue outstanding debts for up to six years."

The woman's notice also said she owned money for a DVD she purchased at the closing down sale, however ecollect "took my word for it" and waived the fee.

She urged people to check what they were being asked to pay and query anything that didn't seem right.

Ministry of Business, Innovation & Employment consumer protection manager Mark Hollingsworth agreed.

"It can be a good idea to keep a record of your communications in case you need them later on," he said.

"Request that they provide you with evidence that the money is owed, for example, the name of the DVD that was borrowed, when it was due, how the overdue fee has been determined, and a copy of the terms and conditions.

"If you can't resolve the matter with the debt collection agency you can take your case to the Dispute Tribunal."