Security Credit Systems on Your Credit Report? Fight Back and Win

You want to stop phone calls from Security Credit Systems, find out why they’re contacting you in the first place, or remove them from your credit report. So, what can you do, and what steps should you take if you find yourself in one or all of these situations?

What Is Security Credit Systems?

First, Security Credit Systems is a third-party debt collection agency also called SecurityCred. The third-party debt collection process can include the following steps:

• A consumer has an account with an original creditor.
• When they don’t pay that account as agreed, it becomes delinquent.
• The original creditor will use in-house employees to try and collect the owed amount first.
• After a period of time, the company might hire a third-party collection agency.
• The third-party collection agency will try to collect on behalf of the original creditor.
• If the third party is successful in recovering money for a debt, they’re paid on a contingency fee basis in many cases.
• Sometimes, an original creditor will charge off a debt altogether, meaning they don’t think they’ll ever collect it, and then they’ll sell the debt for a fraction of what it’s worth.

Third-party debt collectors like Security Credit Systems have to follow certain federal laws that don’t necessarily apply to an original collector. One of these laws is called the Fair Debt Collection Practices Act.

The FDCPA limits what a debt collection agency can say and do. Violations of the FDCPA can include:

• Contacting someone about a debt before 8 a.m. or after 9 p.m.
• Using harassment, profanity, or threatening language.
• Being deceptive or abusive.
• Continuing to try to collect debts that aren’t owed.
• Threatening any type of illegal activity.
• Improper sharing of information.
• False representation or making false statements.
• Excessive phone calls.

Why Is Security Credit Systems Calling Me?

Since Security Credit Systems is a debt collector, they call you because you owe a debt or they believe you do. They could also call you to verify a family member’s identity if they owe a debt.

Who Does Security Credit Systems Collect For?

Security Credit Systems collects in the following industries:

• Education, including universities, colleges, and community schools.
• Medical practices and institutions.
• Commercial collections for insurance companies, banks, and small businesses.

Is Security Credit Systems Legitimate?

Security Credit Systems isn’t a scam. They’re a legitimate Buffalo-based business. Even so, numerous consumer complaints and negative reviews are directed at SecurityCred.

For example, many people say they’re being constantly contacted by this company about a debt they don’t owe. There are reports of bad customer service, and there are also people who say they’ve contacted this company repeatedly to dispute information and haven’t heard back.

There are also consumers who say they were told if they paid the debt Security Credit Systems was contacting them about, the information would be removed from their credit report, but it never happened.

What Are Your Rights?

If you’re dealing with Security Credit Systems, you have rights under the FDCPA and the Fair Credit Reporting Act. Broadly, the Fair Credit Reporting Act or FCRA limits who’s able to access your credit report and for what reason, and it requires potential employers to get your express written permission before they check your credit. 

A credit bureau has to provide you with your credit score when you ask for it, and they have to limit access to your information.

If you ask them to do so, credit bureaus are required to add active duty military and fraud alerts to your credit file, and if you’re denied credit, lenders and creditors have to tell you what information was used to come to this decision and where it’s from.

Specifically with regard to debt collectors, under the FCRA, you have the right to dispute anything that’s inaccurate or incomplete. When that happens, the company that receives the dispute has to investigate within a certain period of time—usually 30 days. If the investigation leads to findings that show the debt is inaccurate or the information can’t be verified, it has to be removed from the consumer's credit report.

If an investigation doesn’t resolve a dispute, the credit bureau can be asked to add a statement to the consumer's credit report that explains the situation.

Additionally, the FCRA legally specifies how long certain information can stay on your credit report. Almost all types of negative information must be removed after seven years.

Disputing a Debt with Security Credit Systems

You might assume that if a debt collector is calling you or has reported information to one or more credit bureaus, that it’s correct. In reality, there’s a lot of room for error on the part of debt collectors and credit bureaus.

For example, the wrong information that Security Credit Systems is calling you about or is reporting on your credit file might be related to something incorrect sent to them by the original creditor. Third-party debt collectors are supposed to take steps to verify data they receive from original creditors, but they don’t always do so, or they might not always get it right even after verification.

Some errors can occur with credit bureaus themselves. For example, a credit bureau might mix up your personal information with someone else’s, so you’re being contacted about a debt that belongs to another person. Credit bureaus might report old debts as new, or there could be duplicate debts on your credit, both of which negatively affect your credit score.

Any time you’re being contacted by a debt collector, whether you think it’s a legitimate debt or not, it’s good to talk to a consumer protection attorney before you do anything else. They can review your case and, if necessary, submit a dispute on your behalf so you don’t have to talk to or deal with a debt collector.

Get a Case Review for Free from Fair Credit

If you’re tired of dealing with Security Credit Systems and want to stop their calls or get them off your credit report, reach out to Fair Credit. We’re FCRA attorneys who can navigate your situation with this debt collector and work to find the best outcome for you. We offer free case reviews, so contact us today.