Debt collection -- False statements or representation -- Complaint #20580036
Debt Collector Accused of Trying to Collect Wrong Amount: Understand Your Rights
Complaint Overview
Complaint ID: 20580036
Company: Security Credit Services, LLC
Product: Debt collection
Sub-Product: Credit card debt
Issue: False statements or representation
Sub-Issue: Attempted to collect wrong amount
State: North Carolina
ZIP Code: 28273
Date Received: 2026-03-25T12:00:00-05:00
Date Sent to Company: 2026-03-25T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Risk Assessment
Risk Level: medium
The risk is medium because attempting to collect an incorrect amount is a violation of the FDCPA, which can have legal consequences for the debt collector and potential financial harm to the consumer. The company's response of 'Closed with explanation' suggests they may not have fully resolved the issue from the consumer's perspective.
Consumer Sentiment: frustrated
Topics: debt-collection, credit-card-debt, false-statements, attempted-to-collect-wrong-amount, security-credit-services-llc
AI Analysis
This complaint indicates that Security Credit Services, LLC, a debt collector, may have attempted to collect a debt from you for an amount that was incorrect. This is a serious issue because debt collectors are legally obligated to be accurate in the amounts they claim. Attempting to collect the wrong amount can be a violation of federal law, specifically the Fair Debt Collection Practices Act (FDCPA). It's a common problem in the debt collection industry, as errors can occur due to outdated records, miscalculations, or even intentional misrepresentation. The CFPB complaint system is designed to track these issues. The company's response was 'Closed with explanation,' which means they provided their side of the story to the CFPB, but it doesn't necessarily mean the issue is resolved to your satisfaction or that they've corrected their practices. For other consumers facing similar situations, this highlights the importance of scrutinizing any debt collection demand and understanding your rights. It underscores the need to dispute incorrect amounts promptly and to report violations to regulatory bodies.
What You Should Do -- Consumer Action Plan
1. **Gather Documentation:** Collect all correspondence from Security Credit Services, LLC, including any bills, letters, or call logs related to the debt. Note down dates, times, and the specific amounts they claimed. 2. **Dispute in Writing:** If you haven't already, send a formal dispute letter to Security Credit Services, LLC via certified mail with return receipt requested. Clearly state that they are attempting to collect the wrong amount and provide evidence if possible. Under the FDCPA, they must cease collection efforts until they provide verification of the debt. 3. **Verify the Debt:** Request debt validation from the original creditor and Security Credit Services, LLC. This forces them to prove they own the debt and that the amount is accurate. 4. **File a Complaint with the CFPB:** If you believe the company violated your rights, file a detailed complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. This complaint is already logged, but you can add more details. 5. **Contact Your State Attorney General:** North Carolina has its own consumer protection laws. Contact the North Carolina Attorney General's office to report the issue and inquire about state-specific remedies.
Legal Context & Consumer Protection Laws
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using deceptive or unfair practices, including misrepresenting the amount of a debt. This complaint may involve a violation if Security Credit Services, LLC indeed attempted to collect an incorrect amount. The Consumer Financial Protection Act (CFPA) grants the CFPB authority to protect consumers from unfair, deceptive, or abusive acts or practices (UDAAP) in the financial marketplace, which could also apply here.
Regulatory Insight
The CFPB receives numerous complaints regarding debt collection practices, including attempts to collect incorrect amounts. This pattern suggests that errors or misrepresentations in debt collection are a persistent issue within the industry. While this specific complaint is closed with an explanation, the CFPB often uses complaint data to identify trends and potential enforcement targets. Companies with a history of such complaints may face increased scrutiny.
Resolution Likelihood
40%
State-Specific Consumer Protections
North Carolina has its own consumer protection laws that may offer additional protections beyond federal law. The North Carolina Attorney General's office is the primary state agency responsible for enforcing these laws and can be a valuable resource for consumers experiencing issues with debt collectors.
Industry Comparison
Security Credit Services, LLC's response of 'Closed with explanation' is a common industry practice when addressing CFPB complaints. It indicates they are participating in the process but doesn't necessarily signify superior or inferior handling compared to other debt collectors. Many companies use this response to provide their perspective without admitting fault or offering specific remedies.
Similar Complaint Patterns
A common pattern involves debt collectors attempting to collect debts that are past the statute of limitations, have already been paid, or are for an amount different from what is actually owed. This often occurs when debt portfolios are sold and information is not accurately transferred, or when collectors use outdated or inaccurate records.
Related Issues
Frequently Asked Questions
What should I do if a debt collector tries to charge me more than I owe?
If a debt collector attempts to collect an amount you believe is incorrect, it's crucial to act promptly. First, gather all documentation related to the debt and the collector's communications. Then, send a written dispute letter to the debt collector via certified mail, clearly stating that you dispute the amount owed and requesting verification of the debt. Under the Fair Debt Collection Practices Act (FDCPA), the collector must cease collection efforts until they provide you with proof of the debt's validity and the accuracy of the amount claimed. You should also consider filing a complaint with the Consumer Financial Protection Bureau (CFPB) and your state's Attorney General's office, as attempting to collect the wrong amount is a violation of consumer protection laws.
What are my legal rights if a debt collector misrepresents the amount owed?
Your primary legal protection comes from the Fair Debt Collection Practices Act (FDCPA). This federal law prohibits debt collectors from using deceptive, unfair, or abusive practices. Specifically, the FDCPA makes it illegal for a debt collector to misrepresent the amount of any debt or to threaten to take legal action that cannot legally be taken or is not intended to be taken. If a debt collector violates the FDCPA, you may be able to sue them in federal or state court for damages, including actual damages, statutory damages, and attorney's fees. You also have rights under state consumer protection laws, which may offer additional remedies.
Should I file a complaint if a debt collector is trying to collect the wrong amount?
Yes, you absolutely should file a complaint if a debt collector is attempting to collect the wrong amount. Filing a complaint is a critical step in protecting your rights and holding the company accountable. Start by filing a detailed complaint with the Consumer Financial Protection Bureau (CFPB) online at consumerfinance.gov. This helps the CFPB track patterns of misconduct. Additionally, file a complaint with your state's Attorney General's office, as they often have specific consumer protection divisions that can investigate and take action. Keep meticulous records of all communications and evidence to support your complaint.
What is Security Credit Services, LLC's track record with debt collection complaints?
While this specific complaint is logged with the CFPB, a comprehensive understanding of Security Credit Services, LLC's track record would require reviewing a larger dataset of complaints filed against them. The CFPB's complaint database is a valuable resource for this. Generally, debt collection agencies can face a high volume of complaints due to the nature of their business. Common issues include disputes over debt amounts, communication violations, and harassment. The fact that this complaint was 'Closed with explanation' suggests they responded to the CFPB, but it doesn't indicate a resolution that satisfied the consumer or a systemic correction of practices.
What are my next steps if I believe a debt collector is acting illegally?
If you suspect a debt collector is acting illegally, your immediate next steps should be: 1. **Document Everything:** Keep detailed records of all calls, letters, and interactions. 2. **Send a Written Dispute:** Immediately send a written dispute letter via certified mail to the debt collector, requesting validation of the debt and clearly stating any inaccuracies. 3. **File Complaints:** Submit formal complaints to the CFPB and your state Attorney General's office. 4. **Consult an Attorney:** Consider consulting with a consumer protection attorney. They can advise you on your rights, help you negotiate with the collector, or represent you in legal action if necessary. Many offer free initial consultations.
How can a debt collector trying to collect the wrong amount affect my credit score?
A debt collector attempting to collect the wrong amount can negatively impact your credit score in several ways. If they inaccurately report the incorrect amount to credit bureaus, it can lower your score. If they pursue legal action based on the incorrect amount and win, this judgment could appear on your credit report. Furthermore, if the dispute over the amount leads to missed payments or collection accounts appearing on your report, this will significantly harm your credit score. It's essential to dispute any inaccuracies immediately with both the debt collector and the credit bureaus to prevent or correct such damage.
Are there class action lawsuits against debt collectors for trying to collect wrong amounts?
Yes, class action lawsuits are sometimes filed against debt collection agencies for systemic violations, including attempting to collect incorrect amounts from multiple consumers. If a debt collector engages in a pattern of misconduct, such as consistently misrepresenting debt amounts, it can form the basis for a class action. To find out if there are any active class actions relevant to your situation, you can search legal databases, consult with a consumer protection attorney specializing in class actions, or look for announcements from consumer advocacy groups. Filing an individual complaint with the CFPB and your state AG is also important, as it contributes to the data that might trigger larger investigations or legal actions.
Disclaimer
This analysis is generated by an AI and is for informational purposes only. It does not constitute legal advice. Consult with a qualified legal professional for advice specific to your situation.