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... the fact that Blockbuster decided in it's infinite stupidity to do away with late fees will only drive customers away because alot of people will feel they own the product.

Blockbuster was fraudulently charging late fees that weren't really due, something I caught them at myself. They recently had to make a big settlement. Doing away with the late fees however is a business model I don't understand.

"Blockbuster was fraudulently charging late fees that weren't really due, something I caught them at myself."

Here's a horror story:

About a year ago I got a call from a collection agency demanding payment for a purchase on a credit card that I had closed three years ago.

The date the charge was placed on the card was 2 and 1/2 year AFTER the account had been closed!!!

They wanted something like $189.00.

After many hours on the phone, I finally discovered that Blockbuster had charged a late fee against the original account used to secure my membership.

I had never received a call or letter from Blockbuster saying I owed ANYTHING to them. They just kept adding late fees from the movie I was supposed to have rented, to an account that had been closed for over two years. I still don't remember ever having rented the movie in question

Finally got it dropped (with a letter of apology to me) but that was the last I will ever have to do with that outfit.

I think I was a victim of said fraud.

The Blockbuster business model seems to be "Treat the customer like dirt."

I had it out with them about a year ago when I rented a movie on Saturday night and dropped it off Monday morning on the way to work. This violated the "two-day" rental and I got charged with a late fee. The late fee is equal to a two day rental, even though you don't get to have the movie an additional two days.

I had a "conversation" with the manager (a punk teenager). I asked why the "two day" rental period was not even 48 hours long. I asked if the late fee was a punishment. I asked if they actually lost money because they couldn't rent the movie between midnight (the cutoff time) and 7 a.m. when I put it in their box. He had no good answers but reluctantly waived the late fee and I have never been back.

I don't do business with jerk outfits whose objective is to rip people off. Besides, they rarely had movies I wanted to rent.

I've been with Netflix since then and love the good service and large selection they have. Luckily, in America every obnoxious company that pisses off customers creates an opportunity for someone else to make a fortune.