Southwest Credit Systems or SWC Group 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 Southwest Credit Systems?
Southwest Credit Systems , LP (SWC Group) is a third-party debt collection agency based in Texas. Southwest Credit has received consumer complaints alleging violations of the Fair Debt Collection Practices Act (FDCPA), such as using false or misleading information in an effort to collect a debt and sharing information about delinquent debts with unauthorized third parties. If SWC has contacted you about past due financial obligations, make sure you understand your rights before you take action.
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Is Southwest Credit Systems a scam?
They’re legit. According to the Better Business Bureau (BBB), Southwest Credit Systems, LP was founded in 1974. The BBB established a profile page for SWC in July 1976, and SWC has been a BBB-accredited business since August 1976. The BBB lists Southwest Credit Systems as a collection agency that uses the alternate business names, Southwest Credit, SWC Group, LP, and SWC Solutions, LP. Buzzfile estimates Southwest Credit Systems’ annual revenue at $27 million and the size of its headquarters staff at 200 employees.
According to its website, SWC “delivers leading accounts receivable management and consumer service solutions…that result in dramatic increases in revenue, greater efficiencies, reduced operating costs, and increased customer satisfaction for …clients.”
Who does Southwest Credit Systems collect for?
Southwest Credit Systems collects delinquent debts for unpaid traffic tolls; government agencies; utility service providers; telecommunications and cable companies; property management companies; and education lenders. SWC “annually manages billions of dollars in receivables accounts, serving organizations of all sizes, from Fortune 500 private firms to small public agencies.”
SWC Groups’s collections services are comprised of first-party solutions; pre-collect solutions, third-party solutions, and “guaranteed revenue solutions.” SWC’s first-party division “supplements or replaces clients’ internal accounts receivable function by implementing…strategies to …help… maintain positive relationships with …customers, by…acting as an extension of the client business.” Their pre-collection division “encourages payment on delinquent accounts while retaining …customers and reducing charge-offs.” SWC’s third-party collections division provides“successful and comprehensive services encompassing primary, secondary, tertiary, and warehoused accounts.” SWC’s guaranteed revenue division forces on unpaid traffic tolls by “taking images from… toll lanes and paying the authority transponder toll rate for each pursuable image within 30 to 45 days,” thereby “allowing toll agencies to reduce collection costs.”
Southwest Credit states that they “abide by the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA), and the Federal Trade Commission’s (FTC’s) “Red Flag” Rules.” Their Resources page provides links to ACA International, insideARM, Credit and Collection News, Resource Management Services, Telecommunications Risk Management Association, and the International Bridge, Tunnel, and Turnpike Association.
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 Southwest Credit Systems – SWC Group?
As of November 2019, the BBB has closed 398 complaints against Southwest Credit Systems in the preceding 3 years, with 93 complaints closed in the previous 12 months. Most of those complaints cited problems with billing and collections, although several complaints also cited problems with customer service and sales.The BBB has posted complaint information on SWC’s profile page stating that most “complaints are regarding billing and collection issues. Specifically, consumers state that the company makes numerous calls to their places of residences at unsightly hours and do not have the correct person or debt information.” As of July 2013, the Consumer Financial Protection Bureau (CFPB) has closed 1,937 complaints involving SWC. Justia lists at least 20 cases of civil litigation involving SWC.
Southwest Credit Systems 4120 International Parkway, Suite 1100 Carrollton, TX 75007 Phone Number: 800-637-7439 Website: http://www.swcgroup.com/
Can Southwest Credit Systems 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 SWC 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!
In May 2019, in United States District Court for the District of Columbia, a judge issued an opinion in a case alleging Southwest Credit Systems had violated certain provisions of the FDCPA. In this case, the plaintiff had acquired a debt with a cable television service provider. Allegedly, SWC had obtained information form the cable company about the plaintiff’s address and social security number. Beginning in November 2015, SWC “began reporting the plaintiff’s alleged …debt to credit bureaus… Sometime later, the plaintiff discovered these communications, and, in October 2016, she faxed SWC a one-page letter” stating that she “disputed the…collection account on her credit report… and refuses to pay this account.” SWC received the letter but failed to locate an account associated with the plaintiff. As a result, SWC “re-reported the alleged …debt to credit bureaus without designating the debt as disputed” in October, November, and December 2016. The plaintiff hired an attorney, andher attorney sent SWC a letter “alleging that the defendant violated the FDCPA by reporting a disputed debt to credit bureaus without marking the debt as disputed.” After receiving this letter, Southwest Credit Systems finally found the plaintiff’s delinquent account and in January 2017 marked it as disputed. Subsequently, in December 2017, the plaintiff sued SWC, “alleging that they had… violated the FDCPA by reporting to credit bureaus her disputed… debt without also communicating the dispute.”
The court noted that the plaintiff’s complaint cited two provisions of the FDCPA—the “first of those sections states that ‘a debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt,’ with several examples of qualifying misconduct provided… Under the second, which also supplies several examples, the law states that ‘a debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt.’” Attorneys for SWC argued that SWC “had no reason to know that the… debt it reported to credit bureaus in October, November, and December 2016 was disputed” because they “learned which debt was disputed only after receiving the…letter from the plaintiff’s attorney, which provided a city, state, and zip code that matched the defendant’s account information.” Because SWC was unable to explain “why that information was more useful than the last four digits of the plaintiff’s social security number, the creditor, or the exact date that the defendant opened the account,” the court rejected SWC’s motion for summary judgment and allowed the plaintiff to continue with her complaint.
Here are some past Press Releases of Lawsuits Brought On By Lemberg Law in Federal Court
March 3, 2017. On behalf of our client, Lemberg Law recently filed a complaint in U.S. District Court, Southern District of Florida. The case, against Southwest Credit Systems, charges the company with violating federal law and state law. It asks for $500 to $1,500 per call in Telephone Consumer Protection Act statutory damages, $1,000 in Fair Debt Collection Practices Act (FDCPA) statutory damages, plus other relief.
Our client says that SCS begin calling his cell phone about a debt owed by his father-in-law. When he answered the phone, he heard a period of silence followed by an automated click, at which point the call was transferred to a SCS operator. The silence and the click we’re both clues that he was receiving a robocall. Our client says that he never gave his consent for SCS to call his cell phone. Moreover, our client told SCS that they were calling him in error, and to please stop. Nevertheless, SCS continue to call him.
The lawsuit charges that SCS violated the Telephone Consumer Protection Act (TCPA) by robocalling our client’s cell phone without his consent. The lawsuit also charges that SCS violated the Fair Debt Collection Practices Act (FDCPA) by contacting third parties without being asked to do so; by engaging in harassing behavior; and by using unfair and unconscionable means to collect a debt. It also charges SCS with invading our client’s privacy.
November 11, 2015. On behalf of our client, Lemberg Law recently filed a complaint in Massachusetts District Court. The case, against SCS, charges the debt collection agency with violating state law and asks for statutory and punitive damages, plus other relief.
Relentless phone calls can get on your nerves and can be quite upsetting. Our client tells us that SCS called her home phone up to five times per week. Our client talked to the debt collection agency’s representatives several times, telling them that she couldn’t pay the debt and to stop calling. Nevertheless, SCS kept calling.
This lawsuit charges that SCS violated the Massachusetts Consumer Protection Act by employing unfair or deceptive acts to collect a debt, and by calling more than twice in a seven-day period.
Southwest Credit Systems – SWC Group 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 SWC 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.
Can You Help Me Delete Southwest Credit Systems – SWC Group from My Credit Report?
The brief answer is yes. And won’t charge you a cent for a consultation or our aid.
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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.