Sued by Security Credit Services? 5 Steps to Take Now.

If you are dealing with Security Credit Services, it’s important to understand how this company operates and how it may impact your finances beyond the lawsuit itself. Many consumers first become aware of the company after seeing Security Credit Services on their credit report, often without prior notice.

Security Credit Services, sometimes referred to as Security Credit Systems, operates as a third-party debt buyer and collection agency. This means they typically purchase delinquent debts from original creditors and then attempt to collect the full balance from consumers. These collection accounts can remain on your credit report for years and may significantly affect your credit score if not addressed properly.

Who is Security Credit Services?

Security Credit Services is a debt collection agency. According to the Florida Division of Corporations, Credit Corp Solutions’ principal address is 306 Enterprise Drive, Oxford, Mississippi 38655.  Security Credit Services, LLC (SCS) is a debt buying company and debt collector that purchases old credit union and student loan debt. As part of its business model, SCS acquires debts, often in bundled portfolios, and may not always have detailed dispute histories for these accounts. SCS files collection lawsuits through The Law Offices of Timothy Baxter and Associates. The company has been involved in litigation regarding its debt collection practices, including allegations of violating the Fair Debt Collection Practices Act (FDCPA).

Security Credit Services is not BBB accredited but still has an A+ rating despite 122 complaints in the last 3 years (as of 11/11/21). The Consumer Financial Protection Bureau complaint database shows 424 complaints (as of 11/11/2021 – with a 3-year lookback).

Who is EquiPro Investments?

According to its website, Security Credit Services rebranded in 2018 and now operates as EquiPro Investments. While the name changed, the company continued to function in the debt collection space, working with accounts that were originally owed to other creditors. EquiPro Investments, like Security Credit Services, is involved in purchasing or managing delinquent consumer debts and then attempting to collect those balances. As a result, some consumers may see EquiPro Investments listed instead of Security Credit Services when reviewing collection notices, court filings, or their credit reports.

If you are dealing with a lawsuit or collection effort, it’s important to understand that a name change does not eliminate your rights. The company must still prove ownership of the debt and comply with all applicable state and federal debt collection laws.

Why have I been sued by Security Credit Services?

Security Credit Services is a debt collection agency. Sometimes, after an account goes into delinquency, the creditor decides to sell the debt to another party. Security Credit Services is a company that buys these debts. Therefore, if Security Credit Services has sued you, it is probably because they now own a debt that you once owed to another creditor. 

When Security Credit Services, LLC (SCS) purchases debts, it often submits debt collector reports to credit reporting agencies, such as Equifax, and may report the debts as delinquent. For example, SCS purchased Wood’s debt from PenFed and reported it as delinquent without noting Wood’s dispute. Debt collectors must communicate that a debt is disputed when reporting to credit agencies, as failing to do so can violate the Fair Debt Collection Practices Act (FDCPA).

Have You Been Served with a Lawsuit Filed by Security Credit Services LLC?

If you have been served with a lawsuit from Security Credit Services LLC, it usually means the company claims you owe money on an old debt, most commonly a credit card account. In many cases, Security Credit Services is not the original lender. Instead, it operates as part of security credit systems that purchase charged-off debts from creditors after an account goes into default.

Once the debt is sold, the company may attempt to collect the full balance, including added fees or costs. Because these debts are often several years old, many people are surprised to receive court papers after no recent contact from the original creditor. Being sued does not automatically mean the debt is accurate or enforceable. However, failing to respond can result in a default judgment.

What can I do about my lawsuit by Security Credit Services?

1. Show Up 

First, don’t bury your head in the sand!  Florida Courts are divided into 3 levels depending on how much the lawsuit is for:  small claims, county court, and circuit court.  In small claims cases, a defendant is required to attend a hearing early on called a “case management conference”; whereas in county court and circuit court, the defendant has 20-days to file a written response from the day the lawsuit papers are served.  If a defendant doesn’t appear (in small claims) or they fail to respond (in county court or circuit court), the court will likely enter a default judgment against them.  Make sure to respond (or hire someone to do so) so you don’t lose off the bat!

2. Review the claim

Next, review the records from the case.  When a lawsuit is based on the records of another company, it may be that the records are inaccurate.  Review the claim and don’t assume it is correct just because they have written it.  See if the claim and the amount are accurate.

3.  Consider your options

Evaluate the alleged debt from the lawsuit, along with your other debt and your income.  Is there a defense to the claim?  Can you realistically afford settlement, or does it make more sense to consider bankruptcy?  Here is where you may want to have a free consultation with a debt resolution professional who can help you to objectively review your options.

4.  Negotiate

Assuming bankruptcy is not your best option and depending on the merits of your case, negotiation may be the next best step.  If you hire a debt settlement attorney to assist you with the lawsuit, your attorney will negotiate for you.  However, if you are determined to go it alone, you are generally better talking to the opposing firm than doing nothing (*this is a generalization; each situation is different).  Just keep in mind, they are not looking out for your best interest.  They are likely not going to tell you about your defenses to the lawsuit or your protections from collection.  Their job is to get you to pay.

5. Any Settlement Agreement Should be in Writing

Finally, if you reach a settlement agreement, even if you are representing yourself, your agreement should be in writing.

Contact the Attorney for Security Credit Services

If you’re facing collection efforts or a lawsuit from Security Credit Services, our experienced debt defense attorneys are ready to step in and protect your rights. Security Credit Services is a debt buyer and collection agency that may pursue aggressive tactics to recover alleged debts, including filing lawsuits in court. Responding correctly and quickly is critical to avoid default judgments, wage garnishment, or other financial consequences.

Taking action early can make a critical difference. Acting quickly may help stop further collection activity, avoid default judgments, and reduce the risk of wage garnishment or bank account levies. We offer a free initial consultation to help you understand your options and decide on the best path forward. Contact us today for your free initial consultation with an experienced Florida debt attorney.