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LEGAL NEWSLINE

Friday, March 29, 2024

Consumer board reaches $5 million settlement with South Carolina business in debt collection case

Federal Gov
Law money 08

WASHINGTON, D.C. — The Consumer Financial Protection Bureau has reached a $5 million settlement with a South Carolina business and its' subsidiaries regarding allegations of improper debt collection and credit furnishing practices. 

The bureau recently announced its settlement with Security Group Inc., and its subsidiaries Security Finance Corporation of Spartanburg and Professional Financial Service Corp.

According to the consent order, the bureau alleges Security Group and its entities were in violation of the Consumer Financial Protection Act for engaging in "improper in-person and telephonic collection attempts" regarding consumer installment loans as well as retail installment contracts. 


Also according to the Bureau, the Security Group entities furnished "inaccurate and incomplete" consumer information to credit reporting agencies in violation of the Fair Credit Reporting Act. 

The consent order requires Security Group and subsidiaries to pay the $5 million civil penalty and is barred from specific collection practices. The company must also correct any inaccurate consumer information it supplied to the credit reporting agencies, according to the bureau. 

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