late fee

Definition

A charge imposed by video rental stores when a customer fails to return rented media by the due date. Late fees were a significant revenue stream for rental businesses and could quickly accumulate if tapes sat unreturned.

Example Usage

I forgot to return my DVD, and the late fee ended up being almost as much as renting a new movie.

Origin

Originated with the rental industry in the 1980s as a penalty system to encourage timely returns and offset lost rental opportunities.

Fun Fact

Late fees from Blockbuster became so notorious that some customers simply abandoned their rentals, leading to the phrase 'Blockbuster late fee' becoming synonymous with unreasonable penalties.

Source: Definition backfill (hailey)

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