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Security Group paying $5M over unlawful debt collection practices

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Security Group paying $5M over unlawful debt collection practices

Security Group Inc. and its subsidiaries Security Finance Corp. and Professional Financial Services Corp. reached a $5.0 million settlement with the Consumer Financial Protection Bureau in connection with allegations regarding their debt collection and credit furnishing practices, the bureau said.

The bureau alleged that the companies violated the Consumer Financial Protection Act when they made improper in-person and telephonic debt collection attempts on consumer installment loans and retail sales installment contracts. Attempts included physically preventing consumers from leaving their houses and visiting and calling consumers' offices despite being aware that the contacts could endanger the consumers' employment, the bureau said.

It also found that the companies violated the Fair Credit Reporting Act when they regularly furnished inaccurate and incomplete information about consumers to credit reporting agencies.

Under the terms of the consent order, the companies are not allowed to conduct certain collection practices and must correct inaccurate information that they furnished to credit reporting agencies.