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Mississippi-Based Security Credit Services LLC Ordered to Stop Deceiving Consumers Through Debt Collection Scandal

After allegedly misleading consumers into paying unnecessary fees and falsely threatening consumers with lawsuits, defendants in a debt collection operation have agreed to settle Federal Trade Commission charges.

The FTC alleged in its complaint that the defendants – a debt buyer and a debt collection law firm, both based in Mississippi – violated the FTC Act and the Fair Debt Collection Practices Act by deceptively charging consumers a fee for payments authorized by telephone. According to the FTC, the defendants led consumers to believe that the fee was unavoidable when, in fact, those who paid by mail or online did not incur the fee. The FTC also alleged that the companies violated the laws by falsely threatening to sue consumers as a means of getting them to pay. A debt collector is prohibited by law from using false, deceptive, or misleading representations or tactics when collecting a debt.

Under the terms of the proposed settlement, the defendants will pay $799,958 in restitution for consumers. The defendants also are barred from making any misrepresentations when collecting a debt, including false claims that consumers must pay an extra fee when making payments on a debt or that they will be sued for not paying a debt.

According to the complaint, debt buyer Security Credit Services, LLC, and Jacob Law Group, PLLC have worked together since 2006 to collect debts nationwide. Security Credit buys consumer debt accounts, and contracts with Jacob Law to collect on them. The complaint alleges that Jacob Law called and pressured consumers to immediately make payments on their debts by authorizing electronic checks or credit or debit card payments over the phone. Jacob Law allegedly told consumers they were required to pay an additional fee of $18.95 for this service, but routinely failed to mention that they could avoid the fee by mailing the payment or paying online. Since 2008, the defendants have collected at least $799,958 in fees from consumers.

Source: In Settlement with FTC, Debt Collectors Agree to Stop Deceiving Consumers and Pay Nearly $800,000

Comments 1 Comment

  1. Hello. My name is Laura, and I am 60 years old, and disabled. On 12/10/18 a man came to my door and served a Summons on me over an old JCP bill that I was paying off over time (except when I was too sick to remember the bill) and it was from The Jacobs Law Group, PLLC out of Oxford, Mississippi. On the front of the complaint/summons a Michael A. Jacob, II, Esq., P.O. Box 948, Oxford, MS 388655 is named and this is very stressful to me since I do not owe them anything and do not have an agreement or credit card with them. These believe these ppl are fraudsters. They play lots of games and there is a big difference between owing JCP/Synchrony Bank and owing all these people. It should be against the Law for them to do ppl like this. I’ve been homeless for years and finally got a place and I need help to be sure these ppl do not take what I have. I don’t even own a car. Lord knows any help you can give will be appreciated.

    The Summons says Midland Funding LLC V. Laura Butler but all these names are really confusing. I don’t know who they are and I do not owe them any money. There is a printout of the JCP Credit agreement attached as part of the Summons but as I said I dod not owe Midland a penny. They are trying to say I do…. but I don’t.

    I was really upset and scared so against my better judgement I did call and talk to them on the phone and sent $150.00 check to them. They asked me the name of my bank and like a sick, trusting child I told them.

    Now I’m really at my wits end wondering what they will do and when.

    I live in Arkansas… Miller County. This whole situation has me sick inside. I don’t know what to do. I am desperate for help and really cannot afford a Lawyer. The Lawyers I called have not returned my calls. Please help.

      Comment by Laura Butler on December 19th, 2018 at 9:17 pm

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