The Four Cs of the Debt-Buying Industry: Consumers, Compliance, Certification, and Community
The consumer is always top-of-mind for Security Credit Services. The industry-certified, debt-buying company focuses on helping consumers regain financial independence through a variety of payment solutions and flexible resolutions.
Partnering with Consumers
When Security Credit Services purchases debt from banks and smaller lenders throughout the country, it provides the institutions with an immediate cash infusion and then partners with consumers to find a solution for their outstanding accounts. The emphasis is on helping consumers better their credit and gain a sense of independence.
When a bank or other lender writes off debt as uncollectible, it sometimes then bundles that debt with other uncollected debts and sells the package to debt buyers. The uncollectible debt may be packaged based on the type of debt (credit card or commercial receivables, for example), location of the debtors, or other factors. After purchasing the packaged debt, the debt-buying company then works to collect the debt on its own or through a third-party collector. This is the process of assisting consumers to come up with flexible solutions to their outstanding debt.
Abiding by Regulations
Throughout the process, Security Credit Services focuses on compliance. The company maintains an A+ rating with the Better Business Bureau. Security Credit Services also strictly complies with the Fair Debt Collection Practices Act, which restricts when, how, and how often a debt collector can contact a debtor.
Setting Higher Standards
In addition to complying with all federal and state regulations, Security Credit Services is certified by the Receivables Management Association International (RMAI), the debt-buying industry association. Debt buyers and receivables management companies that are members of the RMAI must abide by a strict code of ethics. The RMAI also has a certification program that focuses on enhanced consumer protections and compliance with industry standards that exceed the minimum practices set by law.
As with other professional certifications, individual members are required to obtain continuing education credits. They are also subject to a criminal background check every two years.
Certified businesses must abide by rigorous industry standards and best practices, and are subject to a background check as well. These best practices address account documentation, chain of title, consumer complaint and dispute resolution, statute of limitation compliance, vendor management, credit bureau reporting, resale, and other relevant procedures.
The RMAI also offers three different compliance audits that help to verify a debt-buying company is in compliance with set standards and practices. The first is a self-compliance audit. A full-third party audit is the next level and performed every three years. A third audit, called the limited third-party compliance audit, is performed when there’s a complaint of member non-compliance.
One aspect of the debt-buying industry that is sometimes forgotten but still important to the overall US economy is job creation. The debt collection part of the industry employs 145,000 individuals. If debt were left as uncollectible and never followed up on, these jobs would not exist.
Payment on bad debt also has a positive impact on a consumer’s employability. Many potential employers run credit checks on job candidates. While the potential employer cannot see a candidate’s credit score, they can see credit history, including bad debts and debts turned over for collection. Paying off such debt is always a positive for a candidate. Employers, particularly those in financial industries or who are hiring individuals to handle money, look for individuals with credit histories void of patterns of money mismanagement.
Giving Back to the Community
As well as helping individual consumers, Security Credit Services believes in supporting the health of the communities we serve by giving back. We are committed through donations of our employees’ time and corporate resources to a number of area charities. These include:
- The Pantry in Oxford
- Doors of Hope Transition Ministries
- LeapFrog literacy tutoring program in Lafayette County
- St. Jude’s Children’s Research Hospital
- Palmer Home for Children in Mississippi
- Le Bonheur Children’s Hospital in Memphis
Certified and Compliant
Security Credit Services is a RMAI certified company and has an A+ rating from the Better Business Bureau. Our focus on compliance and a positive consumer experience has made us the preferred loan portfolio acquisition partner for banks and small lenders across the country. Contact us today for more information.