Being served with a lawsuit can be an overwhelming and stressful experience, especially when it comes from a company you may not be familiar with, claiming you owe it money. You might be asking yourself, “What is Security Credit Services? Why are they suing me? What are my legal options?” In the article below, our Texas debt collection defense attorneys explain what to know if facing a Security Credit Services lawsuit.
What Is Security Credit Services?
Security Credit Services, LLC is a receivables purchasing company, which means that it buys debt from original creditors. The company is headquartered in Oxford, Mississippi, but buys debts from original creditors across the country. Security Credit Services is a subsidiary of EquiPro Holdings.
According to the company’s website, the company purchases many types of delinquent and charged-off debts. For example, it buys debt associated with credit cards, healthcare, bank loans, and other accounts.
The company purchases these debts for pennies on the dollar. Then, it pursues the total amount of debt consumers owe, plus accrued interest and any applicable court costs and legal fees. However, the company does not perform collection attempts directly with consumers. It hires debt collection companies and law firms to handle its collections. For example, in Texas, it often works with the law firm Jenkins & Young, P.C. for its collections.
What Is the Security Credit Services on My Credit Report?
Is Security Credit Services on your credit report? Security Credit Services buys charged-off debt from original creditors. If it is on your credit report, then it may mean it purchased your debt from your original creditor.
Why Is Security Credit Services Suing Me?
Security Credit Services is a debt buyer. It purchases delinquent and charged-off debts from original creditors. A creditor may sell a delinquent debt to another party if it believes it is unlikely to collect the debt on its own. It will sell them for pennies on the dollar to companies like Security Credit Services.
Once Security Credit Services purchases the debt, it will likely try to collect the debt through efforts like phone calls and letters first. However, it may resort to filing a lawsuit if other collection efforts fail. If Security Credit Services is suing you, it is likely because it purchased a debt from an original creditor that it believes you owe.
As mentioned above, Security Credit Services generally hires debt collection companies and law firms to handle its collection efforts and lawsuits. In Texas, it often works with the law firm Jenkins & Young, P.C.
Why You Should Respond to a Security Credit Services Lawsuit
The most crucial action you can take after receiving a Security Credit Services lawsuit is to respond to it. Filing an Answer with the appropriate court is the only way to protect yourself from a default judgment.
A default judgment means an automatic judgment or win in favor of Security Credit Services due to the consumer (you) failing to acknowledge the lawsuit. With a default judgment, Security Credit Services may pursue bank garnishment, property liens, or property seizure to collect the debt.
By filing an Answer with the court, you give yourself more time to assess your legal options and reach a favorable outcome. In Texas, you only have 14 to 20 days to file your Answer with the court. Because of this short deadline, it is important to act quickly.
We recommend working with an experienced debt defense lawyer in Texas to handle it for you. You can also use our guide about responding to a debt collection lawsuit as a resource.
What Are My Options for Resolving a Debt Collection Lawsuit in Texas?
It is important to know that you have several options to resolve a debt collection lawsuit. Your best course of action will depend on the specifics of your case and your financial situation. However, generally, you may be able to:
- Challenge the lawsuit. Debt collection lawsuits may have several solid defenses. For example, Security Credit Services may not have enough evidence to prove that it has the legal right to collect the debt. It may also not be able to prove that the debt amount is correct and that you owe it. Depending on the strength of your defense, you may be able to get the case dismissed or win the case at trial.
- Negotiate a settlement. Seeking a settlement may be in your best interest if you recognize the debt and want to avoid the time, resources, and risk of going to trial. You may be able to settle on a lump-sum payment that is lower than the original debt or set up a manageable payment plan.
- Seek alternative debt relief. If a debt collection lawsuit is part of a larger financial struggle, seeking alternative debt relief may be a viable option for you. For example, you may be able to explore debt consolidation, which involves combining multiple debts into one loan with a manageable payment plan. You may also consider bankruptcy if your debt is too much to handle. You may be able to discharge your unsecured debts in bankruptcy or restructure your debt to be more manageable.
The best course of action for you will depend on the strengths and weaknesses of the lawsuit and your personal financial situation. Our Texas debt defense lawyers are happy to help you navigate your potential legal options during a free consultation. We can review the claims against you and discuss your situation to help you find a path forward.
Schedule a Free Consultation With Our Texas Debt Collection Defense Attorneys
Are you facing a Security Credit Services lawsuit in Texas? If so, do not hesitate to schedule a free, no-obligation consultation to discuss the claims against you. You have legal options available to put the lawsuit behind you.
At Warren & Migliaccio, our Texas debt defense attorneys are happy to review the lawsuit and discuss your potential legal options for moving forward. Call our office at (888) 584-9614 or submit our online contact form, and we will contact you soon to schedule your free consultation.
