Consumer complaint received 2018-04-29
Company: SECURITY FINANCE CORP
State: FL
Product: Debt collection
Sub-product: Auto debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
they somehow recently bought a debt that isn't owed. I had a car in XX/XX/XXXXand was sold by the bank. they said I dont owe anything. Security finance just popped on my credit as negative after 4 years .... 

Security Finance is a consumer finance company based in South Carolina. Security Finance has received many consumer complaints alleging violations of the Fair Debt Collections Practices Act ( FDCPA ) such as failing to provide verification of debts. If you have been contacted by Security Finance, understand your rights before responding. 

According to the XXXX XXXX XXXX ( XXXX  ), Security Finance is part of XXXX XXXX XXXX XXXX. Originally founded in XX/XX/XXXX, XXXX XXXX was incorporated in XX/XX/XXXX, and the XXXX  opened its file in XX/XX/XXXX.  In addition to Security Finance, XXXX XXXX uses over 20 alternate business names, including XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX, and several more. The XXXX lists over XXXX different phone numbers for XXXX XXXX XXXX XXXX and its affiliates. 

XXXX has 9 separate listings for companies associated with Security Finance, all listed at two addresses in XXXX, SC : XXXX XXXX XXXX, XXXX ; Security Finance of Oklahoma , LLC ; XXXX XXXX XXXX XXXX XXXX  ; XXXX XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX of XXXX ; XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX XXXX ; XXXX XXXX XXXX XXXX XXXX ; and XXXX XXXX XXXX XXXX XXXX XXXX XXXX. Together, XXXX estimates an annual revenue of over {$630.00} XXXX and a staff of over 250 people. 

According to its website, Security is licensed to offer traditional installment loans, which vary in amount and terms and available ancillary products based on the state of operation and the type of license obtained within that state. Security advertises loan services in Alabama, Georgia, Idaho, Illinois, Louisiana, Missouri, New Mexico, Nevada, Oklahoma, South Carolina, Tennessee, Texas, Utah, and Wisconsin. Minimum loan amounts range from {$250.00} to {$350.00} ; maximum amounts range from {$1000.00} to {$2000.00}. 

The XXXX  has closed 210 consumer complaints against XXXX XXXX in the past three years, with 87 closed in the past 12 months. Most of these complaints allege problems with billing and collections, with a large number also alleging problems with customer service. An accredited business with the XXXX, XXXX XXXX has been given an A+ rating. Since XX/XX/XXXX, the Consumer Financial Protection Bureau ( CFPB ) has closed 58 complaints against Security. XXXX  lists at least 13 cases of civil litigation involving the XXXX XXXX of companies. 

In XX/XX/XXXX, in The Supreme Court of the State of Oklahoma, a judge issued a decision regarding a suit filed against XXXX XXXX alleging fraud, breach of fiduciary duty, breach of the duty of good faith, and other claims. In this case, the plaintiff, who can not read, acts as though he can, and is noticeably XXXX XXXX XXXXXXXX, was represented by a guardian at an appeal hearing in which XXXX XXXX had filed objections to the jurys findings in favor of the plaintiff in the original case. In the original case, XXXX XXXX was charged with ( 1 ) fraud, deceit, and misrepresentation, ( 2 ) breach of fiduciary duty, and ( 3 ) breach of implied covenant of good faith and fair dealing. These charges resulted from actions of XXXX XXXX that included, between XX/XX/XXXX and XX/XX/XXXX lending money to the plaintiff who at the time was not under a guardianship [ was living ] independently in an apartment, and [ whose ] only income was a monthly social security XXXX check of {$500.00} to {$600.00}. XXXX XXXX representatives testified that they encouraged their customers to renew their loans every two months [ and that their ] policy was for employees to tell their customers the benefits of renewing loans without telling them the costs associated with the renewal. Then before the customer signed the loan agreement, an employee reviewed the loan renewal terms, including the costs and interest. The defendants referred to this as selling the renewal. At times a customer would request a renewal without an employees selling it. Loan renewals account for a significant portion of Securitys income. 

The Fair Debt Collections Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ) are enforced by the Federal Trade Commission ( FTC ) and the Consumer Financial Protection Bureau ( CFPB ). The FDCPA regulates the behavior of collection agencies by prohibiting actions such as the use of abusive or threatening language ; harassment ; or the use of false or misleading information to collect a debt. 

The FCRA regulates how collection agencies and creditors report delinquent debts to credit reporting agencies. Additional consumer protection laws include the Telephone Consumer Protection Act ( TCPA ) and the Consumer Financial Protection Act ( CFPA ). The complaint above illustrates how these laws can be extremely effective tools to hold accountable collection agencies who fail to adhere to their provisions.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation