The debt buyer, Security Credit Services, the “48th Fastest Growing Company in the U.S.” quickly dismissed a $10,000 lawsuit it brought in Logan County against a Paramount Law client when consumer lawyer Victor Wandres entered an appearance on behalf of the firm’s client and formally requested that the debt buyer to produce documents which would show that Security Credit Services is the proper owner of the alleged debt. The Logan County lawsuit was filed by Oklahoma City debt collection law firm Love Beal and Nixon.
It is interesting to note that we believe this is the same “Security Credit Services” that recently settled a lawsuit brought by the FTC for “trick[ing consumers] into paying unnecessary fees and falsely threaten[ing them] with legal action.” In the settlement with FTC, Security Credit Services LLC they agreed to “stop deceiving consumers and pay $800,000 in restitution for consumers.”
When debt buyers like Security Credit Services buy debt from original creditors, like Wells Fargo, there are certain documents which would provide conclusive evidence that the debt claimed to be owed now to the debt buyer was properly transferred from the original creditor. One of the last things that a consumer wants is to pay an alleged debt, only to be hit up for the same debt years later. That’s why it is very important for courts to make sure that all of the alleged assignments and contracts are in order. However, in our experience, consumers without attorneys often get the short end of the stick.
One recent survey conducted by consumer advocate Peter Holland, found that consumers represent themselves “pro se” in court wound up much worse than those individuals represented by a consumer lawyer. However, the study also found that the overwhelming majority of consumers to not formally defend collection suits against them, resulting in a default judgment against the consumer in as little as 21 days, leading to the right of the debt buyer to garnish up to 25% of the consumer’s wages in Oklahoma.
If you have been served with a Summons by Security Credit Services or Love Beal and Nixon, it is important that you seek legal help immediately. Every day counts as your failure to properly respond to the lawsuit will result in the debt buyer winning just because you don’t show up. Most debt buyer lawsuits can be defeated, but is important to have proper legal representation. Our firm can help you determine if you have a defensible claim, and can also assist you with seeking affirmative claims under the FDCPA if your federal rights have been violated.