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I suspect it was not returning the DVDs. I'm not from the USA but recall hearing blockbuster wiped all their late fees..
They moved to a system where it would just auto-sale you the title if you kept it too long after the due date, which people were furious about when they showed up with a title that was due back a month ago. Netflix really ate their lunch though, Blockbuster online was too little too late.
Did you not have to pay a deposit for renting something?