There is significant amount of confusion about how Blockbuster’s no more late fees policy works. Many news organizations have reported the new policy incorrectly or have left out some of the details. After studying how their new policy works and after talking to an employee I have found it necessary to explain how the new policy works and how it affects customers.

1. It is true there are no more late fees.
2. Movies still have a due date.
3. You have up to 7 days past the due date to return movies.
4. On the fourth day past the due date you will receive an automated phone call letting you know you still have the movie and it four days late.
4a. If you return the movie a day or two after receiving this phone call you will not be charged anything and will not owe anything to Blockbuster.
4b. You may still receive the automated phone telling you to bring your movie back even if you have already returned it. If you receive the automated phone call and you did return the movie it is best to call Blockbuster to make sure they received the movie and checked it in.
4c. You may also receive a post card letting you know you have a movie past the due date and just like with the automated phone call there is a chance you will receive the letter even if you already returned the movie.
5. On the eighth day past the due date you will be charged for the movie minus what you paid to rent it. If the movie came out very recently you will be charged the retail price of the movie minis what you paid to rent it (not including tax). If the movie is an older movie you will be charge the used movie price minus what you paid to rent it. The price of the movie is determined at the time you rented it. What this means is if the price of the movie is $21.99 and you paid $4 to rent the movie, you will be charged 17.99 if you keep the movie and never return it.

5a. When you checkout the movie you have the right to know how much you will be billed for the movie if you keep it. You can ask any employee to pull up your account and tell you how much the movie will cost. When you checkout a movie, a record is created in your account listing how much you will be charged for the movie not including tax.
5b. If you have a credit card on file (that is you gave Blockbuster your credit card number when you applied for membership) your credit card will be charged for the movie on the eighth day. When you applied for membership you agreed to allow Blockbuster to charge your credit card for any reason they want, last year it meant they could charge your credit card for late fees and this year they can charge you for not returning movies.
5c. If you do not have a credit card on file or the credit card info is out if date then your account will be billed and you will be expected to pay the account balance the next time to try to rent a movie.
5d. When you apply for a membership you do not have to provide a credit card. It is preferred you provide one however it is not required as long as you have a second form of identification.
6. After you are charged for the movie you have 30 days to bring the movie back and you will be refunded what you were charged for the movie minus a restocking fee of $1.25.
6a. When you return the movie after you have been charged you will receive a store credit on your account. You have to come into the store with the credit card that was billed to receive a refund on your credit card. While your credit card can be automatically billed for the movie, your credit card cannot be automatically refunded for movie when you bring it back.
7. Every store should have some pamphlets that explain the new policy and if you still have questions have the employee go over it with you.