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Illinois Lawsuit Filed Against Redbox

Some Customers Report Being Charged $25 Per Movie Rental

POSTED: 4:37 pm CST November 20, 2009
UPDATED: 7:41 pm CST November 20, 2009

The Channel 4 I-Team found redbox users saying the $1 rental was costing them more, and a class-action lawsuit says it's happening across the country.

Video: Class-Action Lawsuit Filed Against Redbox | I-Team: Redbox Customers Overcharged, They Say

The rules for returning a redbox movie are that if the movie is returned in 24 hours, it costs $1. But some redbox users said they rented movies from, returned them and were still slapped with fees as if they had never returned the movies.

"I was actually shocked," said Michelle McCarrol of Clarksville. "That's my money. I work hard for it."

"That $1 became more like $150," said Mount Juliet resident Allen Barry.

The lawsuit filed last month out of Illinois stated redbox "charged (customers) late fees that are of such an excessive amount as to constitute unlawful penalties." The lawsuit also said that redbox has collected $100 million in illegal and punitive late fees from its customers.

"You live on a check month to month, and then you have something like this to come in, to set you back, in a big way. It's rough," said Sean Johnson, a disabled worker who incurred hefty overdraft charges in his bank account.

"These fees, I believe you summarize them as simply unfair," said redbox attorney Jeff Millar.

Some of the customers, lawyers said, returned movies, still got billed as if they never returned them and were charged as least $25 per movie.

A redbox spokesman said the company does not comment on pending litigation, but in an earlier statement to the I-Team, said, "We acknowledge that occasionally issues arise due to both user error and in some cases redbox error. Regarding overdraft charges, we will refund customers if and when an overdraft occurs as a result of a redbox error."

The lawsuit specifies two Illinois laws that attorney say prevent the kind of fees redbox charges. Redbox is based out of Illinois.

A redbox spokeswoman wouldn't comment but said the company's Better Business Bureau rating has increased from a D minus to C.

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