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My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.
How long ago did you take out the DVD'S?
Ok did you not return the DVD?
You are liable. But if they have gone out of business, who is suing you them or the liquidator?
This means the company is bankrupt.
You have no choice but to pay something. If you dispute it then you have a right to request evidence of the account outstanding.
You have to advise the liquidator that you dispute the debt and ask them to give you evidence about it.
They can accept a lesser amount and any offer should be on a "Without Prejudice" basis so thay cannot hold it against you.
But ask for the evidence.
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You signed an agreement with them and that had penalties, for non return. You agreed to pay the penalties and these can be enforced irrespective of the value of the DVD.
This is what they are claiming. Also this is why I have suggested you offer less.
But they can sue you for the whole amount