Security Credit Services LLC or SCS is a debt collection agency which receives a lot of consumer complaints to our law firm for debt harassment. Find out who they are, why they might be calling, and how you can stop them.
What is Security Credit Services?
Security Credit Services or SCS is an accounts receivable, acquisitions, and management firm based in Mississippi that specializes in purchasing delinquent debt from banks, retailers, and other lenders. SCS has received consumer complaints alleging violations of the Fair Debt Collections Practices Act (FDCPA), including attempting to collect debts not owed and failure to provide verification of debts. If you have been contacted by Security Credit Services, make sure you understand your rights before responding.
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Is Security Credit Services a scam?
They’re legit. According to the Better Business Bureau (BBB), Security Credit Services, LLC is a legitimate collection agency, founded and incorporated in 2003 in Oxford, MS and is registered as a debt relief services company. The BBB opened its file on SCS in 2008.
Who does Security Credit Services collect for?
According to its website, Security Credit Services “purchases very specific types of delinquent and charged-off consumer portfolios. SCS purchases accounts that were recently charged off, as well as warehoused accounts that have been sitting idle for years, and anything in between.” In addition, SCS “buys, sells, and manages 3rd party agencies and law firms to collect nearly $1 billion of delinquent accounts receivables from the nation’s most respected creditors.”
Unlike most collection agencies that focus on profits generated from recovering delinquencies, SCS “raises funds from individual accredited investors and wealth management firms to buy delinquent debt for its individual debt purchasing companies.” Prior to assigning purchased debt to third-party agencies for collection, SCS “analyzes each debt portfolio, reviewing more than 180 data points to help determine the correct purchase price to achieve our internal rate of return objectives.”
Security Credit Services places purchased charged-off debt “into nationally licensed and bonded collection channels.” SCS states that the collection agencies and law firms with whom they hold contractual agreements must adhere to the Fair Debt Collection Practices Act. In addition, SCS cites its membership in the Debt Buyers Association (DBA) and the Association of Credit and Collection Professionals (ACA International).
SCS’ website does not contain references or links to consumer protection laws, consumer resources, or details of its regulatory compliance policy.
Who are we? We are Lemberg Law, a Consumer Law Firm
Lemberg Law is a consumer law firm helping victims of collection harassment and abuse. We are ranked A+ by the BBB. We’ve helped more than 15,000 consumers stop harassment and recover money from debt collectors. Harassed? Abused? Misled by a collector? Call our Helpline today! There is no charge unless we win.
How many complaints are there against Security Credit Services SCS?
The BBB has closed 48 complaints against Security Credit Services in the past three years, with 25 complaints closed in the past twelve months. Almost all of these complaints alleged problems with billing and collections. Since December 2015, the Consumer Financial Protection Bureau (CFPB) has closed 39 complaints against SCS. Justia lists at least 7 cases of civil litigation listing SCS as a defendant.
Can Security Credit Services Sue Me or Garnish My Wages?
It is illegal for a debt collector to make empty threats to sue you or garnish your wages. It is also unlikely SCS would sue you for a debt you may not owe or they cannot validate. However, debt collection agencies are known to have summoned debtors to court and garnish wages after a default judgement. Contacting an attorney BEFORE this could possibly happen would be a smart move. We’ve helped thousands of consumers fight back against unscrupulous debt collection harassers. Find out if we can help you too today!
Unlawful Debt Harassment? Learn the Law & Sue the Collector.
Can you help me file a No Fee Lawsuit against Security Credit Services SCS?
Absolutely. Here are some Sample Cases
In January 2012, in United States District Court, Southern District of Florida, a judge issued an Order Denying Defendant’s Motion for Summary Judgement in a case alleging violations of the FDCPA and the Florida Consumer Collections Practices Act (FCCPA) by SCS. Initially, this case was filed as a complaint against SCS, who had filed a lawsuit against the plaintiff to collect a delinquent debt it had purchased from the original creditor, Wells Fargo Bank. In this case, the plaintiff alleges that legal actions taken by SCS in relation to the collection of the debt violate both the FDCPA and the FCCPA. Specifically, the plaintiff argued that because Security Credit Services was not registered as a collection agency in the State of Florida at the time of its business activities, its actions violated the FCCPA; furthermore, this FCCPA violation resulted in a violation of FDCPA provisions that prohibit collection agencies form taking legal action they cannot legally take. The judge in this case found that the plaintiff successfully established that the debt was a consumer debt. In addition, SCS had purchased debt that was already delinquent and took action to collect the past due amount; because these actions legally constitute debt collection activity, the plaintiff also successfully established that SCS was acting as a debt collector according to the FDCPA. Next, the plaintiff established as a result that SCS’ conduct violated the FCCPA’s provision that “no person shall engage in business in this state as a consumer collection agency or continue to do business in this state as a consumer collection agency without first registering in accordance with this part, and thereafter maintaining a valid registration.” Security Credit Services tried to counter by arguing regardless of the FCCPA violation, its actions did not violate the FDCPA because it never “threatened to take any action against Plaintiff; it simply took action when it filed its counterclaim.”
The court rejected this argument, noting that it “would be illogical to read the FDCPA to condemn the mere threat to file a lawsuit that could not be legally instituted, but actually permit the filing of illegal lawsuits.” As a result, the “Defendant Security Credit Services, LLC’s Motion for Summary Judgment…[was] DENIED.”
Security Credit Services SCS Calling You?
Federal laws protect you. The Fair Debt Collections Practices Act (FDCPA) regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language; harassment; or the use of false or misleading information to collect a debt. The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act (TCPA) and the Consumer Financial Protection Act (CFPA).
Can I sue SCS for harassment?
Yes. If you want to enforce your rights, or recover money for violations — you need to sue. Federal laws provide individuals like you with a means to seek monetary damages in court. For example, the FDCPA allows consumers who have been violated to recover damages of up to $1,000, plus attorney fees and court costs.
“We realize that ours is just one small case among many – and many more serious – but are heartened by the fact that you accepted it and represented us with a professionalism that belied the small dollar amount.”
“If you are unsure about this company…DONT BE!!! They are for real when they say they are here to help you. It only takes a few short minutes of your time to talk to a rep. I was a skeptic, but you did everything you said you would! I can’t say thank you enough!”
”Lemberg Law has saved me from the endless calls, and harassing voicemails. They really do go to bat for you. I didn’t know that debt collection agencies can end up paying your legal bill. What a surprise, to receive free legal help. I’m very grateful for all the hard work they did to finally give me my life back.”
Can You Help Me Delete Security Credit Services SCS from My Credit Report?
Chances are good that we can help. Call us today and we’ll explain.
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About the Author:
Sergei Lemberg is a lawyer whose practice focuses on consumer law, class actions and personal injury litigation. He has been repeatedly recognized as the “most active consumer attorney” in the country. In 2020, Mr. Lemberg represented Noah Duguid in the United States Supreme Court in the case entitled Duguid v. Facebook. He is the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.