Security Credit Systems On Your Credit Report?

Security Credit Systems Explained: Who They Are and How They Collect Debts

Security Credit Systems, Inc., a Buffalo, NY-based debt collection agency, has been in business since 1975. The company has an A+ rating with the Better Business Bureau (BBB), a grade that few collection agencies share. This indicates that Security Credit Systems is willing to comply with laws and regulations and is concerned with customer service—rare qualities among collectors.

This A+ rating is largely based on its “willingness to respond to and satisfactorily resolve consumer complaints in accordance with industry standards.” But it’s important to remember that Security Credit Systems (like other collection agencies) will do everything within its power to obtain payment for the creditor. If you’re on the hook, it’s best to tread carefully, especially if you don’t want to pay up.

Paying Security Credit Systems might seem like the logical thing to do, but it might actually hurt your credit score. Once a debt has been paid, the status will change to “paid,” but the negative mark will remain on your report for up to seven years, and you might be denied loans or get stuck with less attractive interest rates. This is why  it can be worth it to consider all your options in advance of deciding how to settle with a debt collector.

Who Does Security Credit Systems Collect For?

Security Credit Systems buys unpaid debts from businesses of all types and then attempts to recoup those debts for their original owners. It may purchase delinquent accounts directly from the creditors at a discounted rate, or it may try to recover sums owed to a business on the company’s behalf. The agency will often take the easy way out: it demands payment over the phone or via letters and, unless the debt is paid, reports it to the credit bureaus, which will hurt your credit score.

If you don’t settle your debts in collection, your score could decline, and several collection accounts could limit your ability to get credit in the future—a mortgage, loan, or even an apartment lease. Knowing what your rights are under the law can help you navigate the collection process. The Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) guarantee that your creditors must follow some protocols when trying to recoup their funds and that you are entitled to know your rights.

Can You Remove Security Credit Systems From Your Credit Report?

If Security Credit Systems has reported a debt to a credit reporting agency—which they do—it will show up on your credit report and drive down your credit score. The first step would be to request copies of your credit report from each of the three big credit bureaus: TransUnion, Equifax, and Experian. Check each one for errors, such as a wrong balance, an inaccurate date, or worse, a debt that you don’t owe.

You have the right under the Fair Credit Reporting Act (FCRA) to dispute any inaccuracies. If you find an error, you need only file a dispute with the credit bureau that found the mistake. It’ll then contact Security Credit Systems to verify the debt. If the company cannot confirm the debt, or the information is inaccurate, the bureau must delete or correct the entry.

If the debt is legitimate but you want to minimize the damage to your credit score, you might try to negotiate with Security Credit Systems for a lower lump sum offer or you can barter a full payment for a guarantee that the agency will remove the debt from your credit report. If you do manage to get a favorable deal, be sure to get it in writing as verbal agreements will not be considered legally binding.

If the process seems insurmountable—if you don’t have the time or the knowledge to dispute the debts or negotiate settlements—then it may be worth hiring a credit repair company such as Credit Glory and letting professionals who specialize in removing negative marks from credit reports work on your behalf.

What are Your Rights When Dealing With Security Credit Systems?

Anyone being harassed by Security Credit Systems or any other debt buyer or collector should be familiar with the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA), two federal laws that protect consumers by controlling the way debt collectors and creditors treat us and the way information about us is reported.

As part of the FDCPA, debt collectors must comply with certain rules about when and how they can contact you. That includes requirements that they can’t call before 8 a.m. or after 9 p.m. unless you ask them to, cannot contact you at work if you ask them not to, and cannot threaten, insult, or use any type of abusive language with you in an attempt to make you pay the debt. And if Security Credit Systems violates any of these rules, you can file a complaint with the Consumer Financial Protection Bureau.

In addition, the FDCPA states that you have the right to dispute the debt. If you feel that it is not yours or otherwise not owed, then you have the right to demand that the collection agency provide proof of the debt, and the collector must cease any further collection efforts until they can prove that the debt is valid.

Likewise, you also have the right to dispute any inaccurate record that Security Credit Systems reports to the credit bureau—the bureau must investigate your dispute within 30 days and delete or correct the error if it cannot be substantiated. These are critically important protections to ensure that your credit report is accurate and that debt collectors follow the law.

Should You Settle With Security Credit Systems?

Before you settle a debt with Security Credit Systems, you should consider the effect on your credit report. Settling a debt will make the debt collector stop calling you, but it might not get the collection removed from your credit report. That is, the collector’s entry on your credit report will show a status of “paid,” and the collection will remain on your credit report for up to seven years, which could impact your credit score and future credit applications, too.

Secondly, you need to understand the difference between “charge-offs” and collections. Charge-offs are written off by a creditor after several months of missed payments—even though it can then sell the debt to a collection agency. If you pay the debt after it has been charged off, it will still be marked on your credit report. If your debt goes into collections, this creates yet another defamatory entry.

Avoiding Common Mistakes

Don’t make the same mistakes many consumers do when dealing with debt collectors: ignoring them, not negotiating when you make a payment, paying an old debt right before or after the statute of limitations has expired, the list goes on and on. Remember, ignorance is not bliss when dealing with old debt. Always know what’s on your credit report, and what you can legally do about it, so you don’t fall into these traps.

If Security Credit Systems is calling or sending you letters on a regular basis, it probably means the company is trying to collect on a debt or preparing to do so. You can attempt to stop the calls or letters by requesting in writing that the company cease contact, but doing so won’t eliminate the underlying debt. If the debt is unpaid, it could hurt your credit score further or, if the debt is large enough, eventually result in legal action.

The most efficient way to deal with this is to hire a credit repair company which will audit your credit report, point out errors, and negotiate with Security Credit Systems on your behalf. A credit repair professional could take a negative mark off your credit record, saving you time and stress, and ultimately improving your credit score.

Generally, Security Credit Systems won’t litigate or levy a garnishment against your wages. But it legally could if it felt like the debt warrants the trouble. Before Security Credit Systems can garnish your wages, they must win in court first. If they do, then under federal law only 25 percent of your disposable income will be exempt from the garnishment.

If you think your wages might be garnished, speak with a lawyer or credit expert. They can help you figure out what to do and may be able to protect some or all of your income from garnishment.

Get the Help You Need

If you prefer to have someone else deal with your Security Credit Systems account, consider hiring a credit repair company to handle things for you. These professionals can review your credit report for inaccuracies, as well as help remove negative items like Security Credit Systems from your credit report. A Credit Glory specialist will work with you to negotiate with debt collectors and avoid having to do it yourself.

So, what are you waiting for? Stop procrastinating and contact Credit Glory today about ways to clean up your credit report once and for all.